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Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:

Machine-hours required to support estimated production 175,000
Fixed manufacturing overhead cost $2,450,000
Variable manufacturing overhead cost per machine-hour $2.00

Required:
Compute the plantwide predetermined overhead rate.

Sagot :

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