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Moonrays, Inc. manufactures both normal and premium tube lights. The company allocates manufacturing overhead using a single plantwide rate with machine hours as the allocation base. Estimated overhead costs for the year are $108,000. Additional estimated information is given below.

   Normal   Premium
Machine hours (MHr)   29,000   48,000
Direct materials   $58,000   $440,000

Calculate the predetermined overhead allocation rate. (Round your answer to the nearest cent.)
A) $1.40 per machine hour
B) $0.22 per direct labor hour
C) $3.72 per direct labor hour
D) $2.25 per machine hour
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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Mrgo-breedMrgo-breed
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