Compute the predetermined factory overhead rate

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Question - Kramer Company has decided to use a predetermined rate to assign factory overhead to production. The following predictions have been made for 2010:

Total factory overhead costs $150,000

Direct labor hours 40,000 hours

Direct labor costs $200,000

Machine hours 60,000 hours

Compute the predetermined factory overhead rate under the three different bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours.

Reference no: EM131730093

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