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Management is attempting to maintain an overhead rate of 175% for an assembled product. The "problem" area is the machining process. Here, the overhead rate is 225% on the basis of $23,000 direct labor. Total direct dollars, excluding machining, is $89,000. Overhead charges, excluding machining, are $150,000. What overhead rate will the company achieve on the basis of this information? Use direct labor dollars as a base. Can anyone help me with this problem ?
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