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Please explain step by step XYZ company uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on
Please explain step by step
XYZ company uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. X and on machine-hours in Dept. Y. At the beginning of the year, the Corporation made the following estimates: Dept. XDept. Y Direct labor costOMR60,000OMR40,000 Manufacturing overheadOMR100.000OMR60,000Direct labor-hours 6,000 15,000Machine hours 2,000 9.000 What predetermined overhead rates would be used in Dept. X and Dept. Y, respectively? a. 167% and OMR 6.67 O b. None of the given answers O c. 167% and OMR 4.00 O d. 150% and OMR 5.00 e. 200% and OMR 4.00 CLEAR MY CHOICEStep by Step Solution
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