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Johansen Company has the following estimated costs for the next year
Direct Materials 6000Direct Labor 100000Rent of Factory Building 15000Sales Salaries 25000Depreciation on factory equipment 8000Indirect manufacturing materials 12000Production 15000
Johansen pays $5 per hour for direct labor. If manufacturing overhead is applied on the basis of direct labor hours, the predetermined overhead rate per director labor hour will be
a) $2.50b) $3.50c) $3.75d) $5.05e) none of the above
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