Question: Julia Electronics LLC is preparing a flexible budget for the coming year and the following maximum capacity estimates for the furniture division are available Direct

Julia Electronics LLC is preparing a flexible budget for the coming year and the following maximum capacity estimates for the furniture division are available

Direct labor hours

60,000

Variable factory overhead

$150,000

Fixed factory overhead

$240,000

Assume that Julia Electronics LLC 's normal capacity is 80% of maximum capacity. What would be the total factory overhead rate, based on direct labor hours, in a flexible budget at normal capacity?

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