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Rania Company has two departments, Machining and Finishing. The following estimates of Machining and Finishig for the coming year respectively:Direct manufacturing labor-hours 10,000 and $50,000,
Rania Company has two departments, Machining and Finishing. The following estimates of Machining and Finishig for the coming year respectively:Direct manufacturing labor-hours 10,000 and $50,000, Machine-hours 40,000 and 20,000, Manufacturing overhead, $200,000 and $400,000.A single indirect-cost rate based on direct manufacturing labor-hours for the entire plant is:
Select one:
a.
$20 per direct labor-hour
b.
None of these answers is correct.
c.
$10 per direct labor-hour
d.
$8 per direct labor-hour
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