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(TCO 4) Kramer Company has decided to use a predetermined rate to assign factory overhead to production. The following predictions have been made for 2010:
(TCO 4) Kramer Company has decided to use a predetermined rate to assign factory overhead to production. The following predictions have been made for 2010:
Total factory overhead costs
$150,000
Direct labor hours
40,000 hours
Direct labor costs
$200,000
Machine hours
60,000 hours
Compute the predetermined factory overhead rate under the three different bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours.
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