Question
New Firm, Inc. is a manufacturer of various plastic items. The firm applies OH on the basis of machine hours. The rate for the year
New Firm, Inc. is a manufacturer of various plastic items. The firm applies OH on the basis of machine hours. The rate for the year 2020 was $5.89 per machine hour. What does the rate mean? Why does the firm use a rate instead of simply computing OH per unit in the same way it computes direct materials and direct labour per unit?
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Construction Accounting And Financial Management
Authors: Steven J. Peterson
1st Edition
0131109391, 978-0131109391
