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A manufacturer uses job costing (normal costing approach) and uses machine hours as the allocation base. The company reports the following for the year: $100,000

A manufacturer uses job costing (normal costing approach) and uses machine hours as the allocation base. The company reports the following for the year:

$100,000 budget MOH (budget prepared in January)

120,000 actual MOH (known at year end) 20,000 budget machine hours (budget prepared in January)

25,000 actual machine hours (known at year end)

During the year, the company has 10 jobs with 22,000 actual machine hours. How much MOH was allocated during the year?

Select one:

a. 80,000

b. 88,000

c. 110,000

d. 125,000

e. 132,000

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