THE Company applies overhead to production on the basis of machine hours. THE Company had...
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Accounting
THE Company applies overhead to production on the basis of machine hours. THE Company had the following estimated costs for 2021: Direct materials .................... $48,000 Direct labor ........................ 39,000 Advertising expense ................. 14,000 Rent on factory building ............ 26,000 Depreciation on factory equipment ... 16,000 Indirect materials .................. 24,000 Sales commissions ................... 33,000 Production supervisor's salary ...... 30,000 THE Company estimates that 20,000 machine hours will be used during 2021. THE Company's pre-determined overhead rate based on machine hours for 2021 was equal to:
Group of answer choices
$5.50 per machine hour
$4.80 per machine hour
$7.15 per machine hour
$4.00 per machine hour
$3.30 per machine hour
$4.35 per machine hour
$2.10 per machine hour
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