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Compute the company predetermined overhead rate

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Question - Sandler Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Data for the upcoming year appear below.

Estimated machine hours 75,000

Estimated variable manufacturing overhead $4.50 per machine hour

Estimated total fixed manufacturing overhead $825,000

The actual machine hours for the year turned out to be 77,000.

Required: Compute the company's predetermined overhead rate.

Reference no: EM132095815

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