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Treasurers,Inc

Question 2

Multiple Choice

Treasurers,Inc.,a manufacturer of gift articles,uses a single plantwide rate to allocate indirect costs with machine hours as the allocation base.Estimated overhead costs for the year are $9,000,000.Estimated machine hours are 30,000.During the year,the actual machine hours used were 44,000.Calculate the predetermined overhead allocation rate.


A) $205
B) $153
C) $300
D) $120

Correct Answer:

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