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Calculate the predetermined overhead rate if a manufacturing company estimates total manufacturing overhead costs of $850,000 and anticipates total direct labor hours to be 42,500

Calculate the predetermined overhead rate if a manufacturing company estimates total manufacturing overhead costs of $850,000 and anticipates total direct labor hours to be 42,500 hours. Provide the formula and demonstrate the calculation process. Discuss the importance of accurately estimating overhead costs for cost control and decision-making in manufacturing operations.

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