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Williams Incorporated estimated overhead to be $440,000 and direct labor hours to be 100,000 for the year. Actual direct labor ended up being 120,000 hours. Actual overhead for the year amounted to $500,000.
A. What is the predetermined overhead rate?
B. What is the applied overhead for the year?
C. What is the amount of under- or over-applied overhead at the end of the year?
Davies Company purchased merchandise inventory with an invoice price of $5,000 and credit terms of 2/10, n/30. What is net cost of the goods if Davies Company pays within the discount period?
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