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Miramar Industries manufactures two products: A and B. The manufacturing operation involves three overhead activities-production setup, material handling, and general factory activities. Miramar uses activity-

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Miramar Industries manufactures two products: A and B. The manufacturing operation involves three overhead activities-production setup, material handling, and general factory activities. Miramar uses activity- based costing to allocate overhead to products. An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities: Activity Production setup Material handling General overhead Cost $250,000 150,000 80,000 Activity Base ty Base Number of setups Number of parts Number of direct labor hours Each product's total activity in each of the three areas are as follows: Number of setups Number of parts Number of direct labor hours Product A 100 40,000 8,000 Product B 300 20,000 12,000 What is the activity rate for general overhead? ca. $10.00 per direct labor hour b. $6.67 per direct labor hour c. $4.00 per direct labor hour d. $60.00 per direct labor hour

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