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Sturgis Manufacturing produces one model of precision tool and accounts for costs using a job cost system. Information from the most recent fiscal year indicates

Sturgis Manufacturing produces one model of precision tool and accounts for costs using a job cost system. Information from the most recent fiscal year indicates the following: Total manufacturing cost during the year was $2,578,475 based on actual direct materials, actual direct labor, and applied manufacturing overhead. Of this amount, 40 percent was comprised of direct costs. Manufacturing overhead was applied to work in process at 250 percent of direct materials dollars.

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