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Problem - At the beginning of the year, Debion Company estimated the following: Debion uses normal costing and applies overhead on the basis of direct labor hours. For the month of March, direct labor hours were 7,600.
Required -
Calculate the predetermined overhead rate for Debion.
Calculate the overhead applied to production in March.
Using the indirect method, determine the cash flow from operating activities on the cash flow statement. Please show equations
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Prepare journal entries to record the purchase of materials and their use in production
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The answers need to be 200-300 words and can have a citation, using APA 6th edition. The text is Prentice Hall's Federal Taxation 2010: Corporations.
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