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Exercise 7-34 (Static) Predetermined Overhead Rates (LO 7-3) Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further estimates
Exercise 7-34 (Static) Predetermined Overhead Rates (LO 7-3) Linzee Liners estimates that its manufacturing overhead will be $1,725,000 in Year 1. It further estimates that direct labor costs will amount to $750,000. During March, Linzee worked on four jobs with actual direct labor costs of $35,000 for Job 0301, $22,500 for Job 0302, $32,000 for Job 0303, and $16,000 for Job 0304. Actual manufacturing overhead costs for the year were $1,710,000. Actual direct labor costs for the year were $735,000. Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates. Required: a. How much overhead was applied to each of the four jobs, 0301, 0302, 0303, and 0304? b. What was the over- or underapplied manufacturing overhead for Year 1? Complete this question by entering your answers in the tabs below. Required A Required B How much overhead was applied to each of the four jobs, 0301, 0302, 0303, and 0304? Job 0301 Job 0302 Job 0303 Job 0304 < Required A Required B >
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