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Allocation of Overhead PS. Byte Computer Company, a manufacturing organization, has just completed an order that Grater, Ltd., placed for 80 computers. Direct materials, purchased
Allocation of Overhead PS. Byte Computer Company, a manufacturing organization, has just completed an order that Grater, Ltd., placed for 80 computers. Direct materials, purchased parts, and direct labor costs for the Grater order are as follows. Cost of direct materials $36,750 Cost of purchased parts $21.300 220 Direct labor hours Average direct labor pay rate $16 Overhead costs were applied at a single, plantwide overhead rate of 270 percent of direct labor dollars REQUIRED Compute the total cost of the Grater order
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