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The management of Chaloux Corporation would like to investigate the possibility of basing its predetermined...

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Accounting

The management of Chaloux Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours.

Est at the beginning of the year Capacity Actual Machine-hours 17,000 21,000 17,400

Manufacturing Overhead $57,120 $57,120 $57,120

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