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Selection of an Overhead Allocation Base Wolf Manufacturing expects the following overhead costs in the current year:
Indirect material $ 45,000
Indirect labor 55,000
Depreciation of machinery 160,000
Repair and maintenance on machinery 135,000
Utilities and taxes 55,000
Total $450,000
REQUIRED
Question 1: Justify the selection of an appropriate allocation base and calculate the predetermined overhead allocation rate.
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