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Business, 14.04.2020 19:40 marainafolta

The manufacturing overhead budget at Polich Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 9,200 direct labor-hours will be required in February. The variable overhead rate is $9.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $104,880 per month, which includes depreciation of $18,200. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month.
The predetermined overhead rate for February should be:

a) $21.20 per direct labor-hour
b) $9.80 per direct labor-hour
c) $11.40 per direct labor-hour
d) $18.90 per direct labor-hour

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