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Ahshoka Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Ahshoka Corporation has provided the following estimated costs

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Ahshoka Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Ahshoka Corporation has provided the following estimated costs for next year: Direct Materials $950 Direct Labor $2,500 Sales Commissions $5,235 Salary of production supervisor $2,755 Indirect Materials $845 Advertising expense $1,600 Rent on Factory Equipment $2.000 Ahshoka estimates that 500 direct labor-hours and 1000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be: Multiple Choice $3.40 per machine-hour $5.60 per machine-hour $11.20 per machine-hour $6.80 per machine-hour

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