Today more companies are using machine hours as the activity base

Today more companies are using machine hours as the activity base

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Today more companies are using machine hours as the activity base, due to increased reliance on automation in manufacturing operations . A company may use more than one activity base. For example, if a job is manufactured in more than one factory department,
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Unformatted text preview: each department may have its own overhead rate. Western States Fire Apparatus uses two bases in assigning overhead to jobs: direct materials dollars for indirect materials, and direct labor hours for such costs as insurance and supervisors' salaries....
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This note was uploaded on 12/25/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.

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