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Question - A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $329,400 and direct labor hours would be 45,900. Actual manufacturing overhead costs incurred were $301,200, and actual direct labor hours were 53,800. What is the predetermined overhead rate per direct labor hour?
a. $8.61
b. $5.74
c. $7.18
d. $10.76
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