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Vernon and David are the controlling shareholders in E-treme,Inc.Discuss the obligations that Vernon and David owe to the minority shareholders.
Factory Rent
The cost associated with leasing a facility used for manufacturing or production purposes.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to products or job orders, based on estimated costs and activity levels.
Machine Hours
A measure of production activity or cost allocation based on the number of hours a machine is operated.
Overapplied Overhead
Refers to the situation where the allocated overhead cost is more than the actual overhead incurred by a business.
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