Allocating Overhead at Yonkers Cranks, Inc. (Borden's Pillows)
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38. The president of Yonkers Cranks, Inc. forecasts the company will incur $6,000,000 of manufacturing overhead in the coming year. The company also expects the following results for its operations in the coming year:
Direct labor hours
200,000
Direct labor cost
$3,000,000
Machine hours
20,000
What is the overhead allocation rate based on direct labor hours?
A) $30 per hour
B) $15 per hour
C) $10 per hour
D) $2 per hour
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38. The president of Yonkers Cranks, Inc. forecasts the company will incur $6,000,000 of manufacturing overhead in the coming year. ...
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