Question: Kelsh Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs

Kelsh Company uses a predetermined overhead rate based on machine hours

Kelsh Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year: Kelsh estimates that 6,000 direct labour hours and 10,000 machine hours will be worked during the year. What will be the predetermined overhead rate per hour? a. $6.90 b. $5.33 c. $2.40 d. $3.20

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