Question: XYZ Ltd. uses a predetermined overhead rate based on direct labor hours. The budgeted manufacturing overhead costs for the year are $200,000, and the company

XYZ Ltd. uses a predetermined overhead rate based on direct labor hours. The budgeted manufacturing overhead costs for the year are $200,000, and the company expects to use 20,000 direct labor hours. Calculate the predetermined overhead rate per direct labor hour, ensuring accurate allocation of overhead costs to each unit produced based on the labor intensity of production activities.

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