Thibodeaux Limousine Corporation is trying to determine a predetermined manufacturing overhead. Estimated overhead for the upcoming year is $547,000. Budgeted machine hours are 101,000 hours, and budgeted labor hours are 18,000 hours at a rate of $9.00 per hour. Compute the predetermined overhead rate based on: (a) Direct labor dollars (b) Direct labor hours (c) Machine hours.
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