Arciba Incorporated bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget...
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Arciba Incorporated bases its manufacturing overhead budget on budgeted direct laborhours. The direct labor budget indicates that direct laborhours will be required in January. The variable overhead rate is $ per direct laborhour. The company's budgeted fixed manufacturing overhead is $ per month, which includes depreciation of $ All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for January should be:
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