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(Appendix 10A) Stopyra Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
-If the denominator level of activity is 7,500 machine-hours,the variable component in the predetermined overhead rate would be:
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