Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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General Accounting

Aaron, Inc. estimates direct labor costs and
manufacturing overhead costs for the coming year to be
$780,000 and $540,000, respectively. Aaron allocates
overhead costs based on machine hours. The estimated
total labor hours and machine hours for the coming year
are 17,000 hours and 6,000 hours, respectively. What is
the predetermined overhead allocation rate? (Round
your answer to the nearest cent.)
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Transcribed Image Text:Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $780,000 and $540,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 17,000 hours and 6,000 hours, respectively. What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.)
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