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For 2020, Company X uses machine-hours as the only overhead cost-allocation bas...
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For 2020, Company X uses machine-hours as the only overhead cost-allocation base. The direct cost rate is $3 per unit. The selling price of the product is $18. The estimated manufacturing overhead costs are $240000 and estimated 42500 machine hours. The actual manufacturing overhead costs are $274156 and actual machine hours are 50000. Using job costing, the 2020 actual indirect-cost rate is:
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