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Question - From the following budgeted data, calculate the budgeted indirect cost rate that would be used in a normal costing system. Actual results for the year were the following:
Total direct labor hours 6,000
Total indirect labor hours 1,300
Direct costs $35,000
Total indirect labor related costs $60,000
Total indirect nonlabor related costs $75,000
Required - Determine the budgeted indirect cost rate?
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