Combs Manufacturing Company uses predetermined overhead rates based on direct labour cost. The Company budgeted to spend
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Question:
Combs Manufacturing Company uses predetermined overhead rates based on direct labour cost. The Company budgeted to spend
$750,000 on direct labour during the period. Combs estimates annual variable overhead to be $225,000 and annual fixed overhead to
be $900,000. What are Combs' overhead variable and fixed rates?
a. $0.30 variable and $1.20 fixed
b. $1.80 variable and $0.83 fixed
c. $1.50 variable and $1.50 fixed
d. $0.67 variable and $0.67 fixed
e. none of the above
Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
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