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Please explain step by step Luster, LLC uses a single, organization-wide overhead rate. The company has two departments, fabrication and painting. Relevant data is below.
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Luster, LLC uses a single, organization-wide overhead rate. The company has two departments, fabrication and painting. Relevant data is below. Fabrication department: $12,000 fixed overhead, variable overhead $18 per labor hour Painting department: $28,000 fixed overhead, variable $9 per machine hour The company estimated the following hours: Fabrication department: 900 labor hours and 1,000 machine hours Painting department: 1,200 labor hours and 300 machine hours The single, plant-wide overhead rate is based on machine hours. Job A2B3 incurred the following: $280 direct materials, $330 direct labor, 18 labor hours, and 9 machine hours. What is the total cost of Job A2B3? $1,114.90 $1,425.58 $610.00 $1,017.79Step by Step Solution
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