(SOLVED) Predetermined plantwide overhead rate alternative cost drivers Repeat the requirements


Question Description:

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Predetermined plantwide overhead rate; alternative cost drivers Repeat the requirements for Exercise 7.22, assuming that Facsimile uses the following as overhead cost drivers:
(a) Direct labour hours.
(b) Direct labour dollars.
In hindsight, which cost driver seems to be the most appropriate: machine hours, direct labour dollars or direct labour hours? Explain your answer.

Answer

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