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1 HMG uses direct labour hours to apply manufacturing overhead. At the beginning of 2022, manufacturing overhead was estimated to be $94,500 and direct
1 HMG uses direct labour hours to apply manufacturing overhead. At the beginning of 2022, manufacturing overhead was estimated to be $94,500 and direct abour hours were estimated to be 9,000. Actual manufacturing overhead for the year was $110,000. The average hor rate paid to manufacturing employees was $20. Actual direct labour hours used were 10,000. Chapter formulas 1. Predetermined overhead rate = Estimated total manufacturing overhead costs/Estimated total units in the allocation base 2. Overhead applied to a particular job = Predetermined overhead rate x Amount of allocation base incurred by job Required: Part 1: Calculate the predetermined overhead rate for 2022. (3 marks) Predetermined overhead rate
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