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The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are processed during a year.
The following information was taken from the annual budget: Actual results for the year follow:
a.Determine the following predetermined factory overhead rates under each of the following methods:
(1)
Direct labor cost
(2)
Direct labor hours
(3)
Machine hours
b.Determine the under- or overapplied factory overhead under each of the following methods:
(1)Direct labor cost
(2)Direct labor hours
(3)Machine hours
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