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Spencer Inc

Question 142

Multiple Choice

Spencer Inc.applies overhead to production at a predetermined rate of 80% based on direct labor cost.Job No.130 the only job still in process at the end of August has been increased with manufacturing overhead of $6400.What was the amount of direct materials added to Job 130 assuming the balance in Work in Process inventory is $20000?


A) $7000.
B) $6400.
C) $5600.
D) $20000.

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