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The following information pertains to Utter Company: Utter Company does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours.
Predetermined overhead rates for fabrication and assembly are based on direct labour hours.
What is the amount of maintenance costs allocated to the Assembly Department using the direct method? (Round amounts to pounds.)
Inactive Market
A market where there are few transactions, making it difficult to determine a fair price for financial assets due to lack of liquidity.
Price Quotations
Refers to the latest price at which an asset or service is traded between buyers and sellers or is offered to be bought or sold.
Observable Inputs
Inputs that are developed using market data, such as publicly available information about actual events or transactions, and reflect the assumptions that market participants would use when pricing the asset or liability.
Level 2 Input
In fair value measurement, inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, such as using market-correlated data.
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