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Brown Company manufactures a line of lightweight running shoes. CEO William Brown estimated that the company would incur $4,800,000 in manufacturing overhead during the coming
Brown Company manufactures a line of lightweight running shoes. CEO William Brown estimated that the company would incur $4,800,000 in manufacturing overhead during the coming year. When Brown Company uses direct labor hours as its manufacturing overhead application base, predetermined overhead rate is $15/DLH and when it uses machine hours as its manufacturing overhead application base, predetermined overhead rate is $9.60/MH. Additionally, he estimated the company would operate at a level requiring 320,000 direct labor hours and 500,000 machine hours. At the end of the year, Brown Company had worked 315,000 direct labor hours, used 510,000 machine hours, and incurred $4,810,000 in manufacturing overhead. (a) If Brown Company used direct labor hours as its manufacturing overhead application base, how much overhead was applied to jobs during the year? Overhead applied $
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