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Custom Auto Parts manufactures parts to order for antique cars. Custom Auto Parts makes everything from fenders to engine blocks. Each customer order is treated
Custom Auto Parts manufactures parts to order for antique cars. Custom Auto Parts makes everything from fenders to engine blocks.
Each customer order is treated as a job. The company currently has two jobs, Job and Job that are complete, although
overhead has not yet been applied. The company wants to know what each job's cost would be under alternative overhead allocation
rates based on: direct labor cost, direct labor hours, and machine hours. Estimates for this year are as follows:
Depreciation on machinery accounts for percent of the overhead costs. The jobcost sheets show: A Calculate the predetermined overhead allocation rate under the three suggested allocation bases.. Direct Labor Cost Per labor dollar Direct Labor Hours Per Labor Hour Machine Hours Per Machine Hour
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