Find the activity base is direct labor costs

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Question 1: If annual overhead costs are expected to be $694000 and direct labor costs are expected to be $1000000, then if the activity base is direct labor costs:

A. for every dollar of direct labor, 69.4 cents of manufacturing overhead will be assigned.

B. $1.44 is the predetermined overhead rate.

C. a predetermined overhead rate cannot be determined.

D. for every dollar of manufacturing overhead, 1.44 cents of direct labor will be assigned.

Reference no: EM132516270

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