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In determining the cost of inventory, department M's indirect costs are allocated using machine hours...

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Question

Accounting

In determining the cost of inventory, department M's indirect costs are allocated using machine hours as the cost driver. If department M's indirect costs total $825,000 and it expects to use 50,000 machine hours, the indirect cost rate for the department is:

Group of answer choices

$16.50 per machine hour

There is insufficient information to determine the indirect cost rate for the department.

None of these options are correct.

$0.063 per machine hour

Answer & Explanation Solved by verified expert
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