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Paulson Corporation Uses a Predetermined Overhead Rate Based on Machine-Hours

Question 111

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Paulson Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.The Corporation has provided the following estimated costs for next year: Paulson Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.The Corporation has provided the following estimated costs for next year:   Paulson estimated that 40,000 direct labor-hours and 20,000 machine-hours would be worked during the year.The predetermined overhead rate per machine-hour will be: A) $1.60 B) $2.10 C) $1.00 D) $1.05 Paulson estimated that 40,000 direct labor-hours and 20,000 machine-hours would be worked during the year.The predetermined overhead rate per machine-hour will be:


A) $1.60
B) $2.10
C) $1.00
D) $1.05

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