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The Santa Fe Candy Company expects to incur overhead of P60, 000. Also, the company expects to incur 300 direct labor hours (
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Answer #1

Overhead rate = Estimated overhead/Allocation base

Pounds (60,000/30,000) 2 per pound
Direct labor hours (60,000/300) 200 per direct labor hour
Machine hours (60,000/200) 300 per machine hours
Direct labor dollars (60,000/(300*20)) 1000% of direct labor cost
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