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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 36
Applying Overhead Using a Predetermined Rate
Lou's Landscaping uses a job order cost system. The following debits (credits) appeared in Work in Process Inventory for October:
Lou's applies overhead to production at a predetermined rate of 80 percent based on direct labor cost. Job 613, which was started during October and is the only job still in process at the end of October, has been charged direct labor of $6,750.
Required
What cost amount of direct materials was charged to Job 613
Lou's Landscaping uses a job order cost system. The following debits (credits) appeared in Work in Process Inventory for October:
Lou's applies overhead to production at a predetermined rate of 80 percent based on direct labor cost. Job 613, which was started during October and is the only job still in process at the end of October, has been charged direct labor of $6,750.
Required
What cost amount of direct materials was charged to Job 613
Explanation
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Predetermined rate of overhead is 80% of...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
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