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The work in process inventory account of a manufacturing corporation shows a balance of $2,410 at the end of an accounting period. The job sheets
The work in process inventory account of a manufacturing corporation shows a balance of $2,410 at the end of an accounting period. The job sheets of the two incompleted jobs show charges of $420 and $120 for materials, and charges of $400 and $700 for direct labor. From this information, it appears that the corporation is using a predetermined overhead rate, as a percentage of direct labor costs of:
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