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Dafoe Corporation uses direct labor-hours in setting its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $165,600. At
Dafoe Corporation uses direct labor-hours in setting its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $165,600. At the end of the year, actual direct labor-hours for the year were 11,900 hours, manufacturing overhead for the year was over applied by $10,760, and the actual manufacturing overhead was $160,600.
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What must have been the predetermined overhead rate for the year?
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