One of the cost centres in a factory is involved in the final stage of production. Budgeted
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Question:
One of the cost centres in a factory is involved in the final stage of production. Budgeted fixed overhead costs for the cost centre for a period were: Apportioned costs $74,610 Allocated costs $98,328. A predetermined machine hour rate is established for the absorption of fixed production overhead into product cost. Budgeted machine hours for the cost centre in the period were 1,900.Actual overheads allocated and apportioned in the period were $173,732. Actual machine hours in the period were 1,950. The predetermined fixed overhead absorption rate is: *
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