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Estimate Machine-Hours Worked from Overhead Data
Sydney Corporation estimated that machine-hours for the year would be 20,000 hours and overhead (all fixed) would be $80,000. Sydney applies its overhead on the basis of machine-hours. During the year, all overhead costs were exactly as planned ($80,000). There was $11,000 in overapplied overhead.
Required
How many machine-hours were worked during the period? Show computations.
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