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Auburn University Operations And Supply Chain Management Assignment Help - Lewis Company

Question - Lewis Company calculates its predetermined rates using practical volume, which is 288,000 units.
The standard cost system allows 2 direct labor hours per unit produced. Overhead is applied using
direct labor hours. The total budgeted overhead is $3,168,000, of which $864,000 is fixed overhead.
The actual results for the year are as follows:

Units produced: 280,000
Direct labor: 570,000 hours @ $9
Variable overhead: $2,320,000
Fixed overhead: $872,000

(1-1) The predetermined fixed overhead rate is:
(1-2) The predetermined variable overhead rate is:
(1-3) Calculate the applied fixed overhead.

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