Bowl Manufacturing has 2 departments working on Job 123: Department A and Department B. Department...
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Accounting
Bowl Manufacturing has 2 departments working on Job 123: Department A and Department B. Department A bases their predetermined overhead rate on direct labor hours. Department B bases their predetermined overhead rate on machine hours. It is estimated that Department A will use 740 direct labor hours this month and Department B will use 520 machine hours. Fixed overhead costs are estimated to be $2,368 for Department A and $2,392 for Department B. Variable overhead for Department A is $6 per direct labor hour and variable overhead for Department B is $4 per machine hour. What is the predetermined overhead rate for Department A? A. $4.55 per direct labor hour O B. $10.55 per direct labor hour C. $8.60 per direct labor hour O D. $9.20 per direct labor hour
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