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Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor
Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturnng overhead to products, but it is trylng to decide whether it should use a different allocation base such as direct labor doilars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: tableEstinated value,Actual ValueMamufacturing overhead cost,$$
Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturnng overhead to products, but it is trylng to decide whether it should use a different allocation base such as direct labor doilars or machine hours.
Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here:
tableEstinated value,Actual ValueMamufacturing overhead cost,$$
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