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The Denver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on machine-hours in Dept. A

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The Denver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on machine-hours in Dept. A and on labor cost in Dept. B. At the beginning of the year, the Corporation made the following estimates: What predetermined overhead rates would be used in Dept. A and Dept. B, respectively? Select one: a. $15 and 150% b. $6 and 5% c. $6 and 150% d. $150 and 6%

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