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SA Inc. uses a single plantwide predetermined overhead rate (cost driver rate) based on machine hours. The company based its predetermined overhead rate for the
SA Inc. uses a single plantwide predetermined overhead rate (cost driver rate) based on machine hours. The company based its predetermined overhead rate for the current year on the data below. Total machine hours 15,500 Total fixed manufacturing overhead costs $155.000 Total variable manufacturing overhead costs per machine hour $2/machine hour Recently, Job 101 was completed with the following characteristics: Total machine hours 15 Direct materials cost $365 Direct labor cost $730 What is the amount of overhead applied to Job 101? In other words, how much overhead is allocated to Job 101 using SA Inc's 1-cost-pool cost allocation system? 0 $420 O $1,080 O $755 $180 0 $980
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