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Ross Roberts is a cost accountant and business analyst for Datura Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories: direct
Ross Roberts is a cost accountant and business analyst for Datura Design Company (DDC), which manufactures expensive brass doorknobs. DDC uses two direct-cost categories: direct materials and direct manufacturing labor. Roberts feels that manufacturing overhead is most closely related to material usage. Therefore, DDC allocates manufacturing overhead to production based upon pounds of materials used. Data table At the beginning of 2020 , DDC budgeted annual production of 430,000 doorknobs and adopted the following standards for each doorknob
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