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he Hilary Firm uses a traditional costing system.  The firm uses machine hours as a basis for overhead allocation in its cost centre.  Cost data for a production period are as follows:                                                Estimated                                        Actual         Overheads                     $85 000                                          $82 605         Machine hours                 7 500                                             7 210         Prime cost                    $125 000                                         $126 000   4. What is the predetermined overhead rate?

he Hilary Firm uses a traditional costing system.  The firm uses machine hours as a basis for overhead allocation in its cost centre.  Cost data for a production period are as follows:                                                Estimated                                        Actual         Overheads                     $85 000                                          $82 605         Machine hours                 7 500                                             7 210         Prime cost                    $125 000                                         $126 000   4. What is the predetermined overhead rate?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The Hilary Firm uses a traditional costing system.  The firm uses machine hours as a basis for overhead allocation in its cost centre.  Cost data for a production period are as follows:

 

                                             Estimated                                        Actual

        Overheads                     $85 000                                          $82 605

        Machine hours                 7 500                                             7 210

        Prime cost                    $125 000                                         $126 000

 

4. What is the predetermined overhead rate?

 

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