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Felton Quality Productions uses a predetermined overhead allocation rate based on machine hours. It has provided the following information for the year 2014:

Actual manufacturing overhead costs incurred $90,000
Manufacturing overhead costs allocated to production $42,500
Actual direct materials cost $220,000
Actual direct labor cost $46,000
Actual direct labor hours 2,000

Based on the above information, find out the manufacturing overhead rate applied by Felton Quality.


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