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Paul Company applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor for August follows. Estimated Actual Overhead cost $174,000 $171,000

Paul Company applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor for August follows. Estimated Actual Overhead cost $174,000 $171,000 Direct labor hours 5,800 5,900 Direct labor cost $87,000 $89,975

How much is the predetermined overhead rate?

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