Abc company applies manufacturing overhead based on direct


Question - ABC Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead cost and direct labor for August follows.

                                       Estimated              Actual

Overhead cost                   $270,000              $300,000

Direct labor hours              20,000                  30,000

Direct labor cost                $90,000                $60,000

How much is the predetermined overhead rate?

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Accounting Basics: Abc company applies manufacturing overhead based on direct
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