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San Diego State University Operations And Supply Chain Management Assignment Help - Basis risk


Question - The Ad Guys Inc. provides advertising services for clients across the nation. The Ad Guys is presently
working on four projects, each for a different client. The Ad Guys accumulates costs for each account
(client) on the basis of both direct costs and allocated indirect costs. The direct costs include the
charged time of professional personnel and media purchases (air time and ad space). Overhead is
allocated to each project as a percentage of media purchases. The predetermined overhead rate is
50% of media purchases. On June 1, the four advertising projects had the following accumulated
costs:
June 1 Balances
Clinton Bank…………………. $80,000
Pryor Airlines……………â ...Read More

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