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Fee The first step is to calculate the estimated total overhead costs in the two departments.
Machining
Customizing
The second step is to combine the estimated manufacturing overhead costs in the two departments ($44,400 + $21,200 = $65,600) to calculate the plantwide predetermined overhead rate as follow:
The overhead applied to Job C is calculated as follows:
Overhead applied to a particular job = Predetermined overhead rate x Machine-hours incurred by the job
= $6.56 per MH x (4,100 MHs + 1,600 MHs)
= $6.56 per MH x (5,700 MHs)
= $37,392
Job C's manufacturing cost:
Reference: CH02-Ref24
Prather Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:
Recently, Job P513 was completed with the following characteristics:
-The amount of overhead applied to Job P513 is closest to:
Directional
In investing, this term refers to strategies or trades based on the anticipated direction of the market or an asset's price movement.
Arbitrage
A zero-risk, zero-net investment strategy that still generates profits.
Transparency
In finance, it refers to the extent to which investors have ready access to required financial information about a company, market, or security.
Investment Strategy
A plan designed to guide an investor's selection of an investment portfolio, typically based on goals, risk tolerance, and future needs for capital.
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