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Possible cost drivers are direct labor hours 2550 machine

Question - Two of the activity cost pools for Molina Company are (a) machining ($325,000) and (b) inspections ($42,000). Possible cost drivers are direct labor hours (2,550), machine hours (12,500), square footage (2,000), and number of inspections (200).

Compute the overhead rate for each activity.

Overhead Rate

Machining

Inspections

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Accounting Basics: Possible cost drivers are direct labor hours 2550 machine

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