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Baxter Accounting Services estimates for next year revenues of $2700000, direct labor of $600000, and...

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Accounting

Baxter Accounting Services estimates for next year revenues of $2700000, direct labor of $600000, and overhead of $978000. Under traditional costing, overhead is applied to audit jobs using the rate of

58% of direct labor.

163% of direct labor.

22% of revenues.

36% of revenues.

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