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Suppose, you have recently joined a sweater factory as an Accounts Executive. On first day...

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Accounting

Suppose, you have recently joined a sweater factory as an Accounts Executive. On first day at office, your immediate supervisor has asked you to find Predetermined Overhead Rates for each of the seven departments using labor hours as the activity base. Based on the managerial accounting knowledge you have gained from the course, what could cause a major flaw in the calculation process proposed by your supervisor? Explain in your own words. Write within half page (maximum).

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