Cranston company estimates the following overhead costs for the coming year: equipment depreciation $160,000 equipment maintenance 60,000 supervisory salaries 40,000 factory rent 100,000 total $360,000 cranston is also budgeting $600,000 in direct labor costs and 15,000 machine hours for the coming year. required:
a. calculate the predetermined overhead rate using direct labor costs as the allocation base. round your answer to the nearest cent. $ per direct labor dollar.
b. calculate the predetermined overhead rate using machine hours as the allocation base. $ per machine hour.
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Cranston company estimates the following overhead costs for the coming year: equipment depreciation...
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