Albert Machine Tool Company produces tools on a job order basis. During May, two jobs were completed,

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Albert Machine Tool Company produces tools on a job order basis. During May, two jobs were completed, and the following costs were incurred:

Albert Machine Tool Company produces tools on a job order

Other factory costs for the month totaled $16,800. Factory overhead costs are allocated one-third to Job 401 and two-thirds to Job 402.
a. Describe two alternative methods for assigning the overtime premium cost to Jobs 401 and 402 and explain how the appropriate method would be determined.
b. Compute the cost of Job 401 and Job 402 under each of the two methods described in parta.

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Principles Of Cost Accounting

ISBN: 9780840037039

15th Edition

Authors: Edward J. Vanderbeck

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