Question: Predetermined plantwide overhead rate; alternative cost drivers Repeat the requirements for Exercise 7.22, assuming that Facsimile uses the following as overhead cost drivers: (a) Direct

Predetermined plantwide overhead rate; alternative cost drivers Repeat the requirements for Exercise 7.22, assuming that Facsimile uses the following as overhead cost drivers:

(a) Direct labour hours.

(b) Direct labour dollars.

In hindsight, which cost driver seems to be the most appropriate: machine hours, direct labour dollars or direct labour hours? Explain your answer.

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