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Oscar prizes, a manufacturer of gift articles, uses a single plant wide rate to allocate direct costs. The company allocates manufacturing overhead using a single
Oscar prizes, a manufacturer of gift articles, uses a single plant wide rate to allocate direct costs. The company allocates manufacturing overhead using a single plantwide rate with machine hours as the allocation base. Estimated overhead cost for the year is $5,000,000 and estimated machine hours are 25,000. During the year, the actual machine hours used were 30,000. Calculate the predetermined allocation rate.
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