What is the budgeted overhead rate for the, Accounting Basics

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What is the budgeted overhead rate for the

Sweet Co. uses budgeted overhead rates to apply overhead to individual jobs. They use a system based on direct labor hours. Last year, the company made the following estimates for this year.

Direct labor costs $42,000,000
Factory overhead costs $7,500,000
Direct Labor Hours 150,000
Machine Hours 100,000

(a) What is the budgeted overhead rate for the company?

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