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Rent on special production equipment (5000 per year plus 0.2 per unit produced).
How it will be treated?
Will it be treated as a direct expense or a Manufacturing OH or a Non-Manufacturing OH?The 0.2 is a direct expense. The 5,000 is a production overhead.
Have you watched my free lectures on this? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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