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Caterpillar manufactures custom equipment. It currently uses a plantwide overhead rate, based on direct labor hours, to allocate its $ 2 , 0 0 0

Caterpillar manufactures custom equipment. It currently uses a plantwide overhead rate, based on direct labor hours, to allocate its $ $2, 000, 000$ of manufacturing overhead to individual jobs.

Compute the plantwide overhead rate, assuming Caterpillar expects to incur $40, 000$ total DL hours during the year.

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