Mazoon Leather Company decided to use a multiple predetermined overhead rate to apply manufacturing overhead...
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Accounting
Mazoon Leather Company decided to use a multiple predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate chosen is labor hours for Primary Treatment Department and machine-hours for Secondary Treatment Department. The accounting records shows the following estimates made at the beginning of the year: Primary Treatment Secondary Treatment Manufacturing overhead cost $ 120,000 $ 60,000 Machine-hours 2,000 15,000 the.oool Direct labor-hours 6.000 Direct labor cost $ 60,000 $ 40.000 What predetermined overhead rates would be used in Mazoon Leather for Primary Treatment Department and Secondary Treatment Department, respectively? a. 200% and $4 b. None of the given answer $20 and 150% d. $2 and 150% e S20 and $4
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