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A Company Estimates That Costs for the Next Year Will

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A company estimates that costs for the next year will be $600,000 for indirect labor, $40,000 for factory utilities and $1,000,000 for the CEO's salary. The company uses machine hours as its overhead allocation base. If 80,000 machine hours are planned for this next year, then the plantwide overhead rate is $8 per machine hour.


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