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Riverview Company's budget for the coming year includes $5,000,000 for manufacturing overhead, 20,000 hours of direct labor, and 200,000 hours of machine time.
If Riverview applies overhead using a predetermined rate based on machine-hours, what amount of overhead will be assigned to a unit of output which requires 0.6 machine hours and 0.25 labor hours to complete?
a. $25.00.
b. $63.00.
c. Some other amount.
d. $15.00.
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Riverview Company's budget for the coming year includes $5,000,000 for manufacturing overhead, 20,00...
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