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At the beginning of the year, a company predicts total overhead costs of $873,600. The company applies overhead using machine hours and estimates it will
At the beginning of the year, a company predicts total overhead costs of $873,600. The company applies overhead using machine hours and estimates it will use 1,560 machine hours during the year. What amount of overhead should be applied to Job 65A if that job uses 29 machine hours during January? Overhead applied to Job 65A On March 1 a dressmaker starts work on three custom-designed wedding dresses. The company uses job order costing and applies overhead to each job (dress) at the rate of 46% of direct materials costs. During the month, the jobs used direct materials as shown below. Compute the amount of overhead applied to each of the three jobs. Job 1 Job 2 Job 3 Direct materials used $5,400 $7,400 $1,900 Overhead Applied Job 1 Job 2 Job 3
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