Cost Accounting Quiz
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OVERHEAD ALLOCATION AND ACTIVITY-BASED COSTING
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Preston Manufacturing has two departments, Machining and Assembly. The overhead rate is $30 per machine hour in Machining and 150% of direct labor cost in Assembly. Job #434 has the following costs:
* Direct Materials: $15,000
* Machining Dept: 200 machine hours, $4,000 direct labor cost
* Assembly Dept: 50 machine hours, $6,000 direct labor cost
What is the total overhead applied to Job #434?
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