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Direct labor-hours are used as the base to prepare the manufacturing overhead budget at Ford. The variable overhead rate is $1.60 per direct labor-hour. The

Direct labor-hours are used as the base to prepare the manufacturing overhead budget at Ford. The variable overhead rate is $1.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $115,700 per month, which includes depreciation of $19,680. All other fixed manufacturing overhead costs represent current cash flows. The October direct labor budget indicates that 8,900 direct labor-hours will be required in that month.

Required:

a. Determine the cash disbursements for manufacturing overhead for October.

Cash disbursements for manufacturing overhead

b. Determine the predetermined overhead rate for October. (Round your answer to 2 decimal places.)

Predetermined overhead rate

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