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At the beginning of the year, the company estimates total overhead costs to be $4,200,800 and total direct labor hours to be
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Answer: True

Verification:

Predetermined overhead rate

= Estimated total overhead costs ÷ Total direct labor hours

= $4,200,800 ÷ 1,750,900

= $2.40 per direct labor hour.

Therefore, the predetermined overhead rate is $2.40 per direct labor hour.

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