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The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $3.25 per direct labor-hour and
The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $3.25 per direct labor-hour and its total fixed manufacturing overhead is $48,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation of $16,000 per quarter. Required: 1. Using Schedule 5 as your guide, prepare the company's manufacturing overhead budget for next year. 2. Compute the company's predetermined overhead rate (including both variaple and fixed manufacturing overhead) for next year
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