Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and...
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Accounting
Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are:
Potterii sells its products to large box stores and recently added a retail line of products to sell directly to consumers. These estimates are to be used in determining the overhead allocation rate for ABC:
What would be the predetermined rate for each cost pool?
Compute the overhead rate for each activity.
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