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Predetermined Factory Overhead Rate Millerlile Enterprises calculates a predetermined factory overhead rate so that factory overhead may be applied to production during the month. It

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Predetermined Factory Overhead Rate Millerlile Enterprises calculates a predetermined factory overhead rate so that factory overhead may be applied to production during the month. It calculates the overhead using three different methods and then decides which one to use. Total estimated factory overhead costs are $480,000. Total estimated direct labor hours are 50,000. Total estimated direct labor costs we $800,000. Total machine hours are estimated to be 80,000 Calculate the predetermined overhead application rates based on (1) direct labor hours, (2) direct labor costs, and (3) machine hours. Predetermined factory overhead rates: 1. Direct labor hours 80,000 X per direct labor hour 2. Direct labor costs % of direct labor costs 3. Machine hours per machine hour Feedback Che Work Divide factory overhead by each basis to determine the rate of overhead to be applied in each case Previous Check My Work Next o 7/10

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