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Mason, Inc

Question 9

Multiple Choice

Mason, Inc. uses a standard costing system. Overhead costs are allocated based on direct labour hours. The standard variable overhead and fixed overhead rates are $1 and $5 per direct labour hour, respectively. Data relevant for the current period include: Mason, Inc. uses a standard costing system. Overhead costs are allocated based on direct labour hours. The standard variable overhead and fixed overhead rates are $1 and $5 per direct labour hour, respectively. Data relevant for the current period include:   The cost of direct materials added to work in process would be: A)  $540,000 B)  $585,000 C)  $600,000 D)  $650,000 The cost of direct materials added to work in process would be:


A) $540,000
B) $585,000
C) $600,000
D) $650,000

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