Four cost-allocation bases that a manufacturing company
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Identify four cost-allocation bases that a manufacturing company might use to apply factory overhead costs to jobs.
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The expert identifies four cost-allocation bases that a manufacturing company might use to apply factory overhead costs to jobs.
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Dear student,
Identify four cost-allocation bases that a manufacturing company might use to apply factory overhead costs to jobs.
Factory overhead costs are allocated to jobs on the four following bases:
1. Direct labor hours: If the company has estimated that there will be 4000 labor hours and the estimated overhead of $80000 for the forth coming period, then pre determined factory overhead rate is to be established. Predetermined overhead rate per hour= estimated factory overhead/ estimated ...
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