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Accounting

Required information

[The following information applies to the questions displayed below.]

Riverview Company's budget for the coming year includes $6,000,000 for manufacturing overhead, 50,000 hours of direct labor, and 250,000 hours of machine time.

If Riverview applies overhead using a predetermined rate based on machine-hours, what amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.25 labor hours to complete?

Multiple Choice

  • $12.00

  • $16.00

  • $ 6.00

  • $20.00

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