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    Managerial Accounting Study Set 13
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    Exam 3: Systems Design: Job-Order Costing
  5. Question
    When the Predetermined Overhead Rate Is Based on Direct Labor-Hours
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When the Predetermined Overhead Rate Is Based on Direct Labor-Hours

Question 77

Question 77

True/False

When the predetermined overhead rate is based on direct labor-hours, the amount of overhead applied to a job is proportional to the amount of actual direct labor-hours incurred on the job.

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