Question: K Company estimates that overhead costs for next year will be $2,900,000 for indirect labor and $800,000 for factory utilities. The company uses direct labor

K Company estimates that overhead costs for next year will be $2,900,000 for indirect labor and $800,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 80,000 direct labor hours are planned for this year, what is the company's plant wide overhead rate?

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