2) Vrias Corporation uses a predetermined overhead rate based...

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Accounting

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2) Vrias Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for next year: 22,00 0 $ Direct materials 13,00 0 S Direct labor 24,00 0 $ $ 5,000 Sales commissions Salary of production supervisor Indirect materials $ 900 $1,50 $ 0 Advertising expense Rent on factory equipment $ 2,000 Urias estimates that 800 direct labor-hours and 700 machine-hours will be worked during the year. The predetermined overhead rate per hour will be: A) $3.87 per machine-hour B) $5.22 per machine-hour C) 11.28 per machine-hour D) $16.40 per machine-hour E) None of the above

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