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Selected data for the consulting department of Austin Consulting, Inc., follow: Estimated consulting overhead cost for the year$405,000Estimated direct labor cost for the year (@
Selected data for the consulting department of Austin Consulting, Inc., follow:
Estimated consulting overhead cost for the year$405,000Estimated direct labor cost for the year (@ $9/hr.)450,000Actual manufacturing overhead cost for January24,000Actual direct labor cost for January (1,200 hours)16,500
Assuming that direct labor cost is the basis for applying consulting overhead,
a. Calculate the predetermined overhead rate.
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