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Predetermined overhead rate is calculated by dividing total manufacturing overhead cost by direct labour hours so
a. fixed manufacturing rate= $189000/30000=$6.3 per direct labour hour
b. variable manufacturing rate=$2.50 per direct labour hour
so Predeterimed overhead rate = fixed manufacturing overhead rate +variable overhead rate
=$6.30+$2.50=$8.80 per direct labour hour
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**86 at 40 not 88. please show how got Tr in calculations thank
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