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If Precision Manufacturing uses direct labor hours as the allocation base for applying predetermined overhead to jobs, determine the appropriate overhead rate given the following

If Precision Manufacturing uses direct labor hours as the allocation base for applying predetermined overhead to jobs, determine the appropriate overhead rate given the following data:

  • $270,000 estimated total manufacturing overhead for the year
  • $ 30,000 direct labor hours

Predetermined overhead rate is $______ per direct labor hour. Round your answer to the nearest cent.

$0.11

$0.12

$9.00

$10.00

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