Doric Agricultural Corporation uses a predetermined overhead allocation rate based on the direct labor cost. The manufacturing overhead cost allocated during the year is $270,000. The details of production and costs incurred during the year are as follows: Actual direct materials cost $811,500 Actual direct labor cost $170,000 Actual overhead costs incurred $260,000 Total direct labor hours 5580 hoursWhat is the predetermined overhead allocation rate applied by the corporation? (Round your answer to two decimal places.) Group of answer choices 96.30% 158.82% 65.38% 33.27%

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Chapter1: Financial Statements And Business Decisions
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Doric Agricultural Corporation uses a predetermined overhead allocation rate based on the direct labor cost. The manufacturing overhead cost allocated during the year is $270,000. The details of production and costs incurred during the year are as follows:

Actual direct materials cost $811,500
Actual direct labor cost $170,000
Actual overhead costs incurred $260,000
Total direct labor hours 5580 hours
What is the predetermined overhead allocation rate applied by the corporation? (Round your answer to two decimal places.)
Group of answer choices
96.30%
158.82%
65.38%
33.27%
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