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Abbott Pools manufactures swimming pool equipment. Abbott estimates total manufacturing overhead costs next year to be and incur $ 1 , 2 5 0 ,

Abbott Pools manufactures swimming pool equipment. Abbott estimates total manufacturing overhead costs next year to be and incur $1,250,000 of direct labor cost next year. In addition, the machines are expected to be run for 50,000 hours.
Read the requirements.
Compute the predetermined manufacturing overhead rate for next year assuming that the company uses dire Identify the formula and compute the predetermined manufacturing overhead rate for next year using direct labo
Requirements
Compute the predetermined manufacturing overhead rate for next year under t following independent situations:
Assume that the company uses direct labor hours as its manufacturing overhead allocation base.
Assume that the company uses direct labor cost as its manufacturing overhead allocation base.
Compute the predetermined manufacturing overhead rate for next year assuming that the company uses dire
Assume that the company uses machine hours as 1 ts manufacturing overh Identify the formula and compute the predetermined manufacturing overhead rate for next year using direct labo allocation base. percent.)
\table[[,,,,rmined],[Estimated manufacturing overhead costs,*,Estimated direct labor cost,=,overhe],[1500000,,1250000,=,%,0
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