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Franklin Computer Repair treats each repair order as a job. Overhead is allocated based on the cost of technician time. At the start of the year, annual technician wages were estimated to be $800,000, and company overhead was estimated to be $500,000.
Required:
a. Discuss why use of a predetermined overhead rate would be preferred to assigning actual overhead to repair jobs.
b. Suppose a job required parts costing $200 and technician time costing $100.What would be the total cost of the job?
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1.The following financial statements and additional information are reported.
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The following data are available for Jupiter Consultants for the year just ended:
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