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The following data relate to Atlantas Ltd for the year just ended: Budgeted sales revenue $307 500 Actual manufacturing overhead $510 000 Budgeted machine hours
The following data relate to Atlantas Ltd for the year just ended: Budgeted sales revenue $307 500 Actual manufacturing overhead $510 000 Budgeted machine hours 15 000 Budgeted direct labour hours 30 000 Budgeted direct labour rate $ 21 Budgeted manufacturing overhead $546 000 Actual machine hours 16 500 Actual direct labour hours 27 000 Actual direct labour rate $ 22.50 Required: Calculate the firm's predetermined and actual overhead rates for the year using each of the following cost drivers: 1. machine hours 2. direct labour hours 3. direct labour cost. Would you recommend using an actual overhead rate or a predetermined overhead rate for Devon Ltd? Explain your
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