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Shidler College Of Business Operations And Supply Chain Management Assignment Help - the company estimates


Question - ABC uses job-order costing. It applies overhead cost to jobs on the basis of direct labor-hours. For
the current year the company estimates that it will work 20,000 direct labor-hours and will incur
$650,000 of manufacturing overhead. The following transactions took place during the year:
a) $300,000 of raw materials were purchased on account
b) Raw materials were issued into production, $90,000 direct materials and $40,000 indirect materials
c) Labor costs incurred: $40,000 direct, $130,000 indirect, sales commissions $50,000, administrative
salaries $100,000
d) Utility costs for the factory were $60,000
e) Depreciation recorded was $300,000 (70% related to factory; 30% related to administrative offices)
f) Manufacturing overhead ...Read More

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