The overhead rate is a rate per direct labor dollar, per direct labor hour, per machine hour,

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The overhead rate is a rate per direct labor dollar, per direct labor hour, per machine hour, or some other measure of volume. If Scarps Shoe Company expected to incur $480,000 of production overhead costs in the year 2012, and it expected that direct labor costs in the year 2012 would be $400,000, it would establish an overhead rate of

$ per direct labor dollar.

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