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Question - Calculate the predetermined manufacturing overhead rate for the coming year for each of the following application bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours.
Direct material (16,000 lb.) $80,000
Direct labor (@ $10/hr.) 200,000
Indirect material 12,000
Indirect labor 22,000
Sales commissions 34,000
Factory administration 16,000
Non factory administrative expenses 20,000
Other manufacturing overhead* 80,000
*Provides for operating 40,000 machine hours.
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