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Autovalet Manufacturing uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labour cost in Department A, direct labour hours in Department B and machine hours in Department C. The following estimates were used in establishing the predetermined overhead rates for 2014: Department
A
B
C
Manufacturing Overhead
$840,000
$902,000
$850,000
Direct Labour Cost
$600,000
$100,000
Direct Labour Hours
50,000
41,000
Machine Hours
100,000
120,000
170,000
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