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What would be the total predetermined overhead rate

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Question - Dean Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of direct labour-hours. The following data are available:

At capacity Direct labour-hours 60,000

Variable factory overhead R150,000

Fixed factory overhead R240,000

The company is preparing a flexible budget for next year. Assume that Dean's denominator activity for the year is set at 80% of capacity. What would be the total predetermined overhead rate, based on direct labour-hours, for the year?

Reference no: EM133003486

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