Harrington Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on machine-hours in the Machining Department and direct labor cost in the Assembly Department. At the beginning of the year, the company made the following estimates: Machining Assembly Direct labor hours 16,000 12,000 Direct labor cost$20,000 $15,000 Machine-hours5,000 1,000 Manufacturing overhead$25,000 $30,000 What predetermined overhead rates would be used in the Machining and Assembly Departments, respectively
Answers: 1
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Harrington Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The pr...
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