Peter Paul company uses a job order cost system and applies factory overhead to production orders on
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Question:
Peter Paul company uses a job order cost system and applies factory overhead to production orders on the basis of direct labor cost. The overhead rates for 2016 are 200% for dept. A and 50% for dept. B. job 123 started and completed during 2016, was charged with the following costs:
A B
Direct materials 25,000 5,000 Direct labor ? 30,000 Direct materials 40,000 ?
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