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Jones Company manufactures a line of lightweight running shoes. CEO Michael Jones estimated that the company would incur $2,520,000 in manufacturing overhead during the coming
Jones Company manufactures a line of lightweight running shoes. CEO Michael Jones estimated that the company would incur $2,520,000 in manufacturing overhead during the coming year. When Jones Company uses direct labor hours as its manufacturing overhead application base, predetermined overhead rate is $12/DLH and when it uses machine hours as its manufacturing overhead application base, predetermined overhead rate is $6.00/MH. Additionally, he estimated the company would operate at a level requiring 210,000 direct labor hours and 420,000 machine hours. At the end of the year, Jones Company had worked 205,000 direct labor hours, used 430,000 machine hours, and incurred $2,530,000 in manufacturing overhead. (a) Your answer is incorrect. If Jones Company used direct labor hours as its manufacturing overhead application base, how much overhead was applied to jobs during the year? Overhead applied
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