Question: The following data are given for a work center consisting of one worker and one machine: Direct labor rate = $10.00/hr Applicable factory overhead rate

The following data are given for a work center consisting of one worker and one machine:

Direct labor rate = $10.00/hr

Applicable factory overhead rate on labor = 60%

Annual cost of the machine = $26,060

Applicable factory overhead rate on labor = 50%

The work center will be operated one 8-hr shift, 250 days/yr. Determine the appropriate hourly rate for the work center.

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