Question: Determine the manufacturing overhead rate based on direct labor cost if the estimated total manufacturing overhead costs are $120,000, and the estimated total direct labor

Determine the manufacturing overhead rate based on direct labor cost if the estimated total manufacturing overhead costs are $120,000, and the estimated total direct labor cost is $40,000. Explore the rationale behind using direct labor as a basis for allocating manufacturing overhead costs and discuss its advantages and limitations. Present a comprehensive calculation process.

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