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Danny Company has expected total manufacturing overhead of $15,000,000 and has decided that the appropriate cost driver to use to allocate manufacturing overhead to jobs

Danny Company has expected total manufacturing overhead of $15,000,000 and has decided that the appropriate cost driver to use to allocate manufacturing overhead to jobs is machine hours. The expected machine hours are 20,000. The capacity machine hours are 24,000. The long-run average is 22,000 hours.

Calculate the manufacturing overhead rate per machine hour that would be used in each of the three approaches.

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