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Baxter Accounting Services estimates for next year revenues of $2730000, direct labor of $600000, and overhead of $1062000. Under traditional costing, overhead is applied to

Baxter Accounting Services estimates for next year revenues of $2730000, direct labor of $600000, and overhead of $1062000. Under traditional costing, overhead is applied to audit jobs using the rate of

39% of revenues.

22% of revenues.

177% of direct labor.

61% of direct labor.

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