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Odonnel Corporation uses a job-order costing system with a single plantwide predetermined overhead ...

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Odonnel Corporation uses a job-order costing system with a single plantwide predetermined overhead ...

Odonnel Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $36,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 10,000 direct labor-hours.

The predetermined overhead rate is closest to:

▸ $2.80 per direct labor-hour

▸ $6.40 per direct labor-hour

▸ $3.60 per direct labor-hour

▸ $9.20 per direct labor-hour

Textbook

Introduction to Managerial Accounting: Brewer Edition: 9e

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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