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James Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the period, the company
James Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the period, the company estimated manufacturing overhead would be $24,000 and direct labor-hours would be $20,000. The actual figures were $20,000 for manufacturing overhead 18,000 direct labor-hours. The cost records for the period will show:
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