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Question - The lKS company uses a predetermined charge rate of $15 per machine hour of operation. This rate is established by assuming $300,000 in indirect manufacturing costs and 20,000 machine hours. The actual indirect manufacturing costs is $310,000 and the actual machine hours are 15,000. What the indirect manufacturing costs?
a) Undercharged by $85,000
b) Over-assigned by $10,000
c) No answer is appropriate
d) Undercharged by $10,000
e) Over-assigned by $85,000
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