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A company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate
A company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimates $330,000 of manufacturing overhead for an estimated activity level of $200,000 direct labor dollars. $290,000 manufacturing overhead has been accrued so far during the calendar year. How do I find and apply the manufacturing overhead cost to jobs?
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