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While Susan was on vacation during the current year, someone broke into her home and stole the following items:
? A computer used 60% in connection with Susan as an employee and 40% for her personal use.The cost of the computer was $8,000.Depreciation of $3,000 had been taken on the computer and it had a fair market value of $4,000 at the time of the theft.
? A painting that Susan purchased as an investment for $10,000 had a fair market value of
$17,000.
? Silverware purchased for $3,000 had a fair market value of $5,000.
? Cash of $30,000.
Susan's adjusted gross income, before considering any of these items, is $60,000.Determine the total amount of her itemized deductions resulting from the theft.
Variable Manufacturing Overhead
Costs of manufacturing that change with production volume, such as utilities or indirect materials, not fixed over the short term.
Machine-Hours
A measure used in manufacturing to allocate costs to products or job orders based on the number of hours a machine is used.
Predetermined Overhead Rate
A rate used to apply manufacturing overhead costs to products, calculated before the production period begins.
Variable Manufacturing Overhead
The portion of variable overhead costs that are directly associated with the manufacturing process, including costs like indirect materials and utilities.
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