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CR Company has the following estimated costs for the next year: Direct materials Direct labour Rent on factory building Sales

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Answer #1

Estimated total manufacturing overhead cost= Rent on factory building+Depreciation on factory equipment+Indirect labor+Production supervisor's salary

= $15000+8000+10000+12000

= $45000

Overhead rate per hour= Estimated total manufacturing overhead cost/Estimated total labor hours

= $45000/20000

= $2.25 per hour

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