Lorenzo Company uses a job order costing system that charges overhead to jobs on the basis of

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Lorenzo Company uses a job order costing system that charges overhead to jobs on the basis of direct material cost. At year-end, the Work in Process Inventory account shows the following.

Lorenzo Company uses a job order costing system that charges

1. Determine the predetermined overhead rate used (based on direct material cost).
2. Only one job remained in work in process inventory at December 31, 2015. Its direct materials cost is $30,000. How much direct labor cost and overhead cost are assigned to this job?

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Managerial Accounting

ISBN: 978-0078025600

5th edition

Authors: John Wild, Ken Shaw

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