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Larraine, Inc. is developing their manufacturing overhead budget for June, which is based on budgeted direct labor hours. The variable overhead rate is $ 1

Larraine, Inc. is developing their manufacturing overhead budget for June, which is based on budgeted direct labor hours. The variable overhead rate is $11.45 per direct labor hour and 11,436 direct labor hours are budgeted for June. Fixed manufacturing overhead is budgeted at $125,000. All overhead costs are current cash flows except for $25,000 of depreciation.
The predetermined overhead rate every month is recomputed every month. What should the predetermined overhead rate for June be?
Question 16Select one:
A.
$22.38
B.
$19.67
C.
$10.93
D.
$20.19
E.
$31.12

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