Cost Management
Cost Management
8th Edition
ISBN: 9781259917028
Author: BLOCHER, Edward
Publisher: Mcgraw-hill Education,
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Chapter 16, Problem 22BE
To determine

Identify the partial operational productivity ratio.

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General Accounting Question
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Pahr Industries bases its predetermined overhead rate on the estimated labor hours for the upcoming year. At the beginning of the most recently completed year, the company estimated labor hours for the year at 40,000. The estimated variable manufacturing overhead was $8.10 per labor hour, and the estimated total fixed manufacturing overhead was $620,000. The actual labor hours for the year turned out to be 38,500. Required: Compute the company's predetermined overhead rate for the recently completed year.
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