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A Company Estimates That Its Overhead Costs Are $2 000

Question 2

Multiple Choice

A company estimates that its overhead costs are $2 000 000.It decides that the best way of apportioning this is according to the amount of time spent on a specialist machine in production.Total machine time is 2000 hours.How much overhead should a product carry if it spends 3 hours on the machine?


A) $1000
B) $2000
C) $3000
D) $300

Correct Answer:

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