Logan Products computes its predetermined overhead rate annually on the basis of machine-hours. At the beginning of

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Logan Products computes its predetermined overhead rate annually on the basis of machine-hours. At the beginning of the year, it estimated that its total manufacturing overhead would be $250,000 and machines would be run a total of 10,000 hours. Its actual total manufacturing overhead for the year was $236,400 and its actual total machine-hours was 16,500 hours.


Required:
Compute the company's predetermined overhead rate for the year.

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Managerial Accounting

ISBN: 9781260193275

12th Canadian Edition

Authors: Ray H. Garrison, Alan Webb, Theresa Libby

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