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Veronica Company allocates overhead costs to jobs on the basis of directo labor-hours. Its estimated average monthly factory costs for 2005 were as follows:
Its estimated average monthly direct labor-hours are 20,000. Amont the jobs worked on November 2005 were two jobs, G and H, for which the followiing information was collected:
Questions -
a) Compute the overhead rate for Veronica Company.
b) Compute the total production costs of jobs G and H.
c) At what amounts would customers be billed if the company's practice was to charge 180 percent of the production cost of each job?
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