A company expected its annual overhead costs to be $1,000,000 and direct labor costs to be $500,000. Actual overhead was $900,000, and actual labor costs totaled $600,000. How much is the company's predetermined overhead rate to the nearest cent?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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A company expected its annual overhead costs to be $1,000,000 and direct labor costs to be $500,000. Actual overhead was $900,000, and actual labor costs totaled $600,000. How much is the company's predetermined overhead rate to the nearest cent?

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