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Dean Company Uses a Standard Cost System in Which It

question 15

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Dean Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of direct labour-hours. The company is preparing a flexible budget for next year and the following data are available:  At capacity  Direct labour-hours 60,000 Variable factory overhead £150,000 Fixed factory overhead £240,000\begin{array}{ll}&\text { At capacity }\\\text { Direct labour-hours } & 60,000 \\\text { Variable factory overhead } & £ 150,000 \\\text { Fixed factory overhead } & £ 240,000\end{array}
Assume that Dean's denominator activity for the year is set at 80% of capacity. What would be the total predetermined overhead rate, based on direct labour-hours, for the year

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Definitions:

Delusion

A strongly held mistaken belief that is maintained in the face of contradicting evidence, often occurring as part of various psychiatric conditions.

Deviance

Behaviors or actions that deviate from societal norms or expectations, which can be formal (breaking laws) or informal (violating social norms).

Hysteria

An outdated term for a psychological disorder characterized by conversion of psychological stress into physical symptoms.

Melancholia

A severe form of depression with classic symptoms of despair, deep sadness, inability to find joy, and withdrawal.

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