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Exercise 3 - 1 6 ( Algo ) Job - Order Costing for a Service Company [ LO 3 - 1 , LO 3 -
Exercise Algo JobOrder Costing for a Service Company LO LO LO
Yancey Productions is a film studio that uses a joborder costing system. The company's direct materials consist of items such as
costumes and props. Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items
such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its
overhead cost to films based on direct labordollars.
At the beginning of the year, Yancey made the following estimates:
Required:
Compute the predetermined overhead rate.
During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs:
Compute the total job cost for this particular film.
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