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Autovalet Manufacturing uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to...

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Autovalet Manufacturing uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labour cost in Department A, direct labour hours in Department B and machine hours in Department C. The following estimates were used in establishing the predetermined overhead rates for 2014: Department;A;B;C;Manufacturing Overhead;$840,000;$902,000;$850,000;Direct Labour Cost;$600,000;$100,000;$600,000;Direct Labour Hours;50,000;41,000;50,000;Machine Hours;100,000;120,000;170,000

 

Paper#75658 | Written in 18-Jul-2015

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