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Discuss what is predetermined manufacturing overhead rate

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James Inc. estimates that its employees will utilize 400,000 machine hours during the coming year. Total overhead costs are estimated to be $8,800,000 and direct labor hours are estimated to be 200,000. Actual machine hours are 420,000. Actual labor hours are 225,000.

If James Inc. allocates overhead based on machine hours, what is the predetermined manufacturing overhead rate?

Reference no: EM131756225

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