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Ceradyne Manufacturing Company expects annual manufacturing overhead to be $1,512,000. The company also expects 84,000 direct labor hours costing $1,680,000 and machine run time of 47,250 hours.
Problem 1: Calculate predetermined overhead allocation rates based on direct labor hours, direct labor cost, and machine time.
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The acceptance of the offer will not affect normal production or domestic sales prices. The following data is available:
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