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Hunter, Inc. uses a job order costing system. The companys executives estimated that direct labor would be $1,500,000 (150,0

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Answer #1

Predetermined Overhead Rate = Total Estimated Manufacturing Overhead / Total Estimated Direct Labour Hours

Total Estimated Manufacturing Overhead = $ 30,00,000

Total Estimated Direct Labour Hours = 1,50,000 Hours

Predetermined Overhead Rate = 30,00,000 / 1,50,000

Predetermined Overhead Rate = $ 20 per Direct Labour Hour

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