Calculate predetermined overhead rates for the two, Accounting Basics

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Calculate predetermined overhead rates for the two

Suppose that the overhead costs are divided between two activities as follows:

Machining $632,000

Inspection 360,000

Required:

1. Calculate predetermined overhead rates for the two activities, machining and inspection.

2. Suppose a job used 4,000 machine hours and 800 inspection hours. If the job size is 8,000 units, what is the overhead cost per unit?

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Accounting Basics: Calculate predetermined overhead rates for the two

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Accounting Basics: Calculate predetermined overhead rates for the two

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