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The Sky Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined...

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Accounting

The Sky Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labour costs in Department A and on machine hours in Department B. At the beginning of the year, the company made the following estimates: Department A Department B Direct labour cost $40,000 $90,000 Manufacturing overhead $100,000 $120,000 Direct labour hours 9,000 10,000 Machine hours 1,000 16,000 What predetermined overhead rates would be used in Departments A and B

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