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A manufacturing company uses a job order costing account system. Overhead is applied using pounds of direct materials used as an allocation base. Total costs for a particular job were $5720. Of this amount $2600 was direct labor and $1040 was direct material. The company pays $26 per hour of direct labor and $2 per pound of direct materials. What is this company's overhead rate?
$2 per pound of direct material used$1040 per pound of direct material used$520 per pound of direct material used$4 per pound of direct material used$2080 per pound of direct material used
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
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inc. as discussed in the chapter opener uses a costing system with standard costs for direct materials direct labor and
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