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Morelli Electric Motor Corporation manufactures electric motors for commercial use. The company produces three models, designated as standard, deluxe, and heavy duty. The company uses
Morelli Electric Motor Corporation manufactures electric motors for commercial use. The company produces three models, designated as standard, deluxe, and heavy duty. The company uses a job-order cost-accounting system with manufacturing overhead applied on the basis of direct-labour hours. The system has been in place with little change for 25 years. Product costs and annual sales data are as follows:
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