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Norwood Corporation Uses a Predetermined Overhead Rate of $20 Per

Question 106

Multiple Choice

Norwood Corporation uses a predetermined overhead rate of $20 per machine hour.In deriving this figure, the company's accountant used:


A) a denominator of budgeted machine hours for the current accounting period.
B) a denominator of actual machine hours for the current accounting period.
C) a denominator of actual machine hours for the previous accounting period.
D) a numerator of budgeted machine hours for the current accounting period.
E) a numerator of actual machine hours for the current accounting period.

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