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Owens Company Has Analyzed Its Overhead Costs and Derived a General

Question 38

Essay

Owens Company has analyzed its overhead costs and derived a general formula for their behavior: $75,000 + $20 per direct labor hour employed. The company expects to use 25,000 direct labor hours during the next accounting period.
What overhead rate per Direct Labor hour should be applied to jobs worked during the period?

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Total expected overhead = 75,0...

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