Wall Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation's estimated costs for the next year are: Direct materials $ 3,000 Direct labor $20,000 Depreciation on factory equipment $ 6,000 Rent on factory $12,000 Sales salaries $29,000 Factory utilities $15,000 Indirect labor $ 6,000 It is estimated that 10,000 direct labor-hours will be worked during the year. The predetermined overhead rate will be:
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