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Home Q & A Board Other Fields Homework Help Business Accounting
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tawhid111 tawhid111
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A year ago

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
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
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varelaj326varelaj326
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A year ago
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tawhid111 Author
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A year ago
Thanks
big_larry_samp
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
Morgan-C
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2 hours ago
Helped a lot
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