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Plant, Co. estimates that selling costs will be $10,000 for the month, direct labor will be $80,000 using a standard rate of $50/hour, direct materials
Plant, Co. estimates that selling costs will be $10,000 for the month, direct labor will be $80,000 using a standard rate of $50/hour, direct materials will be $10,000, indirect manufacturing costs will be $20,000, and the machines will run 100,000 hours to produce 2,500 units. What is the overhead allocation rate if the company bases that allocation on direct labor hours?
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