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IBM is manufacturing customized servers. The company incurred direct materials costs of $5,000,000 and direct labor costs of $4,000,000 for a specific server order. The
IBM is manufacturing customized servers. The company incurred direct materials costs of $5,000,000 and direct labor costs of $4,000,000 for a specific server order. The predetermined overhead rate is 150% of direct labor costs. If the company worked 100,000 direct labor hours on this order, calculate the total manufacturing costs for the servers.
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