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AT&T Inc. expands its network infrastructure using job costing. In November 2035, the company incurs $150,000,000 in direct costs and $75,000,000 in factory overhead for
AT&T Inc. expands its network infrastructure using job costing. In November 2035, the company incurs $150,000,000 in direct costs and $75,000,000 in factory overhead for network expansion. The project is estimated to take 2 years.
Required:
- Allocate overhead costs using the predetermined overhead rate based on direct labor hours.
- Calculate the total cost for the project.
- Determine the cost per unit of network infrastructure deployed.
- Prepare a schedule showing the allocation of overhead costs to the project.
- Analyze the impact of different allocation methods on project cost.
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