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Home Q & A Board Other Fields Homework Help Business Accounting
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mzeplin mzeplin
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5 years ago
A radial tire manufacturer produces products in two departmentsDivisions A and B. The company uses separate predetermined overhead allocation rates for each department to allocate its overhead. Divisions A and B have estimated manufacturing overhead costs of $170,000 and $350,000, respectively. Division A uses machine hours as the allocation base, and Division B uses direct labor hours as the allocation base. The total estimated machine hours were 34,000, and direct labor hours were 20,000 for the year. Calculate the departmental predetermined overhead allocation rates. (Round your answer to the nearest cent.)
A) Division A$5.00, Division B$17.50
B) Division A$17.50, Division B$5.00
C) Division A$8.50, Division B$10.29
D) Division A$10.29, Division B$8.50
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Horngren's Accounting

Horngren's Accounting


Edition: 11th
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MaseratiMaserati
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5 years ago
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