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During March 2021, Virginia Bay Corporation recorded $275,000 of costs related to factory overhead. Virginia Bay's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $282,000 would be incurred, and 8,900 direct labor hours would be worked. During March, 11,000 hours were actually worked.
Problem 1: Use this information to determine the standard overhead rate. Round to closest cent.
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