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A machine shop has direct materials cost of $ 1 , 8 0 0 , 0 0 0 direct labour of $ 4 , 2

A machine shop has direct materials cost of $1,800,000 direct labour of $4,200,000(direct labour rate is $50 per hour) and budgeted indirect manufacturing costs of $850,000. Management believes that indirect manufacturing costs increase with direct labour hours. What is the budgeted indirect manufacturing cost rate?

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