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The chief cost accountant for Dr. Cinnamon Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning April 1 would be $106,800, and total direct labor costs would be $89,000. During April, the actual direct labor cost totaled $7,500, and factory overhead cost incurred totaled $9,150.
a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals. ?120 %
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