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The direct labor budget of Krispin Corporation for the upcoming fiscal year includes the following budgeted direct labor-hours.
The company’s variable manufacturing overhead rate is $1.75 per direct labor-hour and the company’s fixed manufacturing overhead is $35,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $15,000 per quarter.
Construct the company’s manufacturing overhead budget for the upcoming fiscal year.
Compute the company’s manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. Round off to the nearest whole cent.
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