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Answer
| Plant wide single overhead rate | $58 | Per labor hour |
Calculated as
Total manufacturing overhead = $1267200+$670000 = $1937200
Total Direct labor hours in Assembly and finishing department = 12700+20700 = 33400
Plant wide overhead rate on the basis of labor hours = Total Manufacturing overhead/Total Direct labor hours
= $1937200/33400
= $58 Per labor hours
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