Simplex Company Has the Following Estimated Costs for Next Year

question 16

Multiple Choice

Simplex Company has the following estimated costs for next year:
Simplex estimates that 10,000 direct labor and 16,000 machine-hours will be worked during the year. If overhead is applied on the basis of machine-hours, the overhead rate per hour will be:

• A) $8.56
• B) $7.63
• C) $6.94
• D) $3.50

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