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Overhead is applied on the basis of direct labor hours. Three direct labor hours are required for each product

unit. Planned production for the period was set at 8,000 units. Manufacturing overhead for the period is budgeted at $204,000, of which 30 percent is fixed. The 26,200 hours worked during the period resulted in production of 8,500 unites. Manufacturing overhead cost incurred was $220,500

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