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Richetti Company is a steel fabricator, and job 325 consists of producing 500 steel supports for Elkhardt Company. Overhead is applied on the basis of
Richetti Company is a steel fabricator, and job 325 consists of producing 500 steel supports for Elkhardt Company. Overhead is applied on the basis of direct labor hours, using a predetermined overhead rate of $30 per hour. Direct costs associated with Job 325 are: direct materials, $30,000; direct labor, 400 hours at $16 per hour.
Calculate the cost of Job 325.
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