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Kramer Company has decided to use a predetermined rate to assign factory overhead to production. The following predictions have been made for 2010: Total factory
Kramer Company has decided to use a predetermined rate to assign factory overhead to production. The following predictions have been made for 2010: Total factory overhead costs $200,000 Direct labor hours 40,000 hours Direct labor costs $200,000 Machine hours 50,000 hours Compute the predetermined factory overhead rate under three different bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours.
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