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Vektek Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $2050000. The company used 1000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $2100000. The budgeted machine hours for the year totaled 20000. How much overhead should be applied to Job No. B12?
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A marketing strategy involving the short-term use of incentives or discounts to encourage the purchase of a product or service.
Rebate
A consumer discount in which a portion of the purchase price is returned to the buyer in cash; the manufacturer, not the retailer, issues the refund.
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Small portions or quantities of a product distributed free or at a minimal cost to serve as a representation of the whole, allowing potential customers to test before making a purchase.
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Items or services received for free or at a low cost as an incentive to purchase a product or service, or an additional cost for higher-quality services or products.
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