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ABC Company uses a job order cost system and last period incurred $77,000 of overhead and $120,000 of direct labor. ABC estimates that its overhead
ABC Company uses a job order cost system and last period incurred $77,000 of overhead and $120,000 of direct labor. ABC estimates that its overhead next period will be $80,000. The company also expects to incur $160,000 of direct labor. If ABC bases its overhead applied on direct labor cost, what should be the predetermined overhead rate for the next period
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