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Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $189,140, Estimated direct labor cost was $459,340 for 19,300 hours. Actual costs for the most recent month are summarized here: Total Item Description Direct labor (1,930 hours) Indirect costs Indirect labor Indirect materials Factory rent Factory supervision $45,935 2,570 3,350 3,300 4,860 Factory depreciation 5,730 Factory janitorial work 1,100 Factory insurance 1,780 General and administrative salaries 4,210 Selling expenses 5,420 Required: 1. Calculate the predetermined overhead rate. 2. Calculate the amount of applied manufacturing overhead. 3. Calculate actual manufacturing overhead costs. 4. Compute over- or underapplied overhead. Ch
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