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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
MT425 / MT 425
Managerial Finance and Accounting
Kaplan University (KU Campus)
James Jiambalvo
Managerial Accounting, 4e
Hoboken, NJ: John Wiley & Sons.
Unit 2: Accounting, Management, and Cost Decisions
Chapter 2, Exercise 2-12 Allocating Manufacturing Overhead to Jobs [LO 6, 7] Webber Fabricating estimated the following annual costs.
Expected annual direct labor hours 40,000
Expected annual direct labor cost 625,000
Expected machine hours 20,000
Expected material cost for the year 800,000
Expected manufacturing overhead$1,000,000
Required
a. Calculate overhead allocation rates using each of the four possible allocation bases provided.
b. Determine the cost of the following job (number 253) using each of the four overhead allocation rates.
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