Cost Accounting Quiz
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COST ACCUMULATION SYSTEMS
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Delta Manufacturing applies overhead at 200% of direct labor cost. During the year, actual overhead was $460,000 and applied overhead totaled $440,000. The company prorates under/overapplied overhead among accounts based on their applied overhead content. If after proration, the Cost of Goods Sold account increases by $14,000, what percentage of total applied overhead was originally in the Cost of Goods Sold account?
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