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Chapter 2, Exercise 2-12 Allocating Manufacturing

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 40,000Expected annual direct labor cost 625,000Expected machine hours 20,000Expected material cost for the year 800,000Expected manufacturing overhead$1,000,000Requireda. 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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