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Rosemary Corporation uses direct labor-hours to allocate their manufactuing overhead cost with capacity-based method. At the end of year, they attribute the under/over-applied manufacuturing overhead

Rosemary Corporation uses direct labor-hours to allocate their manufactuing overhead cost with capacity-based method. At the end of year, they attribute the under/over-applied manufacuturing overhead entirely to cost of goods sold.

They find that they need to credit cost of goods sold by $25650 for this adjustment. Actual direct labor hours 12000 Estimate direct labor hours 13000 Estimated direct labor hours at capacity 13200 Actual manufacturing overhead $276,750

The estimated manufacturing overhead at capacity must have been:

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