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Gitano Products uses job - order costing and applies overhead cost to jobs based on direct materials used in production ( not on the basis

Gitano Products uses job-order costing and applies overhead cost to jobs based on direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate is based on a cost formula that estimated $114,400 of manufacturing overhead for an estimated allocation base of $88,000 direct material dollars to be used in production. The company provided the following data for the just completed year:
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\table[[Purchase of raw materials,$134,000
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