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Manufacturing overhead was estimated to be $489,600 for the year along with 20,400 direct labor hours. Actual manufacturing overhead was $470,220, and actual labor hours were 21,800. The predetermined manufacturing overhead rate per direct labor hour would be:

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Answer:

The answer is $24

Explanation:

Manufacturing overhead costs are expenses that result from the manufacturing of the organization’s products. The predetermined overhead rate for machine hours is calculated by dividing the estimated manufacturing overhead cost total by the estimated number of machine hours.

Manufacturing overhead rate = $489,600 / 20,400 =  $24

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