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Title: Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing ...
Post by: tawhid111 on Mar 26, 2023

Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for next year:

Direct materials$ 1,000
Direct labor$ 3,000
Sales commissions$ 4,000
Salary of production supervisor$ 2,000
Indirect materials$ 400
Advertising expense$ 800
Rent on factory equipment$ 1,000

Reamer estimates that 500 direct labor-hours and 1,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be:



▸ $6.80 per machine-hour

▸ $6.00 per machine-hour

▸ $3.00 per machine-hour

▸ $3.40 per machine-hour


Title: Re: Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing ...
Post by: varelaj326 on Mar 26, 2023
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