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Iva Machine Shop Uses a Predetermined Overhead Allocation Rate of $75

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Essay

Iva Machine Shop uses a predetermined overhead allocation rate of $75 per direct labor hour. In January, Iva completed Job B23 which utilized 20 direct labor hours. Provide the journal entry to allocate overhead to the job.


Definitions:

Direct Materials Quantity Variance

The difference between the actual quantity of direct materials used in production and the standard quantity expected, valued at the standard cost.

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