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the answer choices are $1485.00 $1580.53 $1337.37 $1755.00 The management of Pitt Corporation would lke to investigate the possiblity of basing its predetermined overbead rate
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The management of Pitt Corporation would lke to investigate the possiblity of basing its predetermined overbead rate on activity at capacily. The company's controlier has provided an example to milustrate how this new system would work. in thls example, the allocation bise is machine hours and the estimated amount of the allocation base for the upcoming yeat is 7,000 machine-houts. Capacity is 91,000 machine-hours and the actual level of activity for the year is assumed to be 85,500 machine hours. All of the manufacturing overhead is foxed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $450,450 per yeat, It is assumed that a number of jobs were worked on during the year, one of which was Job Q20C which required 300 machine hours If the company bases its predetermined ovelsead rate on the estimated amount of the allocation base for the upcoming year then the amount of manufacturing overtvead charged to Job Q2Ot, is closest to $1485.00
$1580.53
$1337.37
$1755.00
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