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problem 1: Simon, Inc. estimates direct labour costs and manufacturing overhead costs for the coming year to be £780,000 and £620,000, respectively. Simon allocates overhead costs based on machine hours. The estimated total labour hours and machine hours for the coming year are 19,000 hours and 8,000 hours, respectively. What is the predetermined overhead allocation rate?
A. £111.43 per machine hour
B. £26.84 per labour hour
C. £1.53 per labour hour
D. £77.50 per machine hour
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