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help please!! Mark was looking back at the profitability of a few jobs from the prior year, wondering if more profit could have been generated.
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Mark was looking back at the profitability of a few jobs from the prior year, wondering if more profit could have been generated. The executive team of this custom manufacturing shop tries to achieve gross margins near 508 for all of its projects. Each completed job that Mark examined was profitable when overhead costs were determined using the company's actual costing system. Still, since he didn't have those total job costs until the end of the year, he wondered if he could have built in a larger gross margin if he had been able to better estimate these total job costs sooner. Here is more detailed information on the three jobs Mark is reviewing: In this manufacturing company, MOH is applied based on direct labor costs If Mark had used normal costing instead of actual costing, what would the gross margin amount and percentage have been for each job? Assume the same selling prices would have been charged, and assume a budgeted MOH rate of $7/DL dollar would have been used. (Round percentages to 2 decimal ploces, eg 52.75% ) Step by Step Solution
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