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Treasurers, Inc., a manufacturer of gift articles, uses a single plantwide rate to allocate indirect costs with machine hours

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Answer #1

Estimated overheads = $6,000,000

Estimated machine hours = 27,000

Predetermined overhead rate = Estimated overheads/ Estimated machine hours

= 6,000,000/27,000

= $222 per machine hour

The Predetermined overhead allocation rate $222 per machine hour.

Correct option is C.

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