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Calculate the rate of application of manufacturing overhead

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Reference no: EM132795934

A&M INDUSTRIES has provided the following information about its Indirect manufacturing costs and production levels:

Normal capacity .............................. 100,000 units

Expected capacity .............. .............. 85,000 units

Fixed costs ............................... US $ 180,000.00

Variable costs .......................... US $ 1.60

Problem 1: Calculate the rate of application of manufacturing overhead based on units of production for normal and expected capacity.

Reference no: EM132795934

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