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A Company bases its manufacturing overhead budget on budgeted direct labor hour. The variable overhead rate is $5.10 per direct labor hour. the company's budgeted fixed manufacturing overhead is $78840 per month, which includes depreciation of $20520. All other fixed manufacturing overhead costs represents current cash flows. The November direct labor budget indicateds that 5400 direct labor hours will be required in that month.
Required.
A) Determine the cash disbursement for manufacturing overhead for November.
B) Detetermine the predetermined overhead rate for November.
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