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Sybil,IncUses a Predetermined Overhead Allocation Rate to Allocate Manufacturing Overhead

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Sybil,Inc.uses a predetermined overhead allocation rate to allocate manufacturing overhead costs to jobs.The company recently completed Job 300X.This job used 14 machine hours and 4 direct labor hours.The predetermined overhead allocation rate is calculated to be $44 per machine hour.What is the amount of manufacturing overhead allocated to Job 300X using machine hours as the allocation base?


Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices, holding all else constant.

Cost Function

An equation that calculates the total cost incurred by a company to produce a specific quantity of a good or service.

Long-run Equilibrium

A market condition where all factors of production and inputs can be varied, allowing firms to enter or exit the market, ultimately resulting in no economic profit for any firm.

Demand

The amount of a product or service that buyers are ready and able to buy at different price levels over a certain timeframe.

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