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Darling Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended:
Actual units produced: 12,000
Actual variable overhead incurred: $730,000
Actual machine hours worked: 60,000
Budgeted fixed overhead $72,000
Planned level of machine-hour activity 50,000
If Darling estimates four hours to manufacture a completed unit, the company's standard fixed overhead rate per machine hour would be:
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