[renaal72]

Arling Company which applies overhead to production on the basis of machine hours, reported the following data for the period just ended:
Actual units produced - 12,000
Actual Overhead incurred-$730,000
Actual machine hours worked - 60,000
Budgeted fixed overhead - $720,000
Planned level of machine-hours activity - 50,000
If Arling estimates four hours to manufacture a completed unit,what would be the company's standard fixed overhead rate per machine hours?

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