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20 Pope Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and
20 Pope Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs for the next two quarters are given below: Direct materials Direct labor Manufacturing overhead Total manufacturing costs Number of units to be produced Estimated unit product cost First Qtr Second Qtr $ 288,000 $ 140,000 160,000 80,000 240,000 220,000 $ 688,000 $ 440,000 160,000 80,000 $ 4.30 $ 5.50 Based on the information given, estimate the fixed manufacturing overhead cost per quarter. A. $ 648,000 B. $ 192,000 C. $ 200,000 D. $ 220,000 E. None of the above
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