Question: Please show work. Thank you Group Problem 2 Predetermined Overhead Rate; Application of Overhead; Gersey Inc., which allocates all manufacturing overhead on the basis of
Group Problem 2 Predetermined Overhead Rate; Application of Overhead; Gersey Inc., which allocates all manufacturing overhead on the basis of direct labor cost, budgeted the following for the first quarter: Revenues Variable Costs: 1,200,000 Direct Materials Indirect Materials 100,000 20,000 250,000 15,000 80,000 120,000 24 Indirect Labor Other variable manufacturing overhead Direct Labor 585,000 Sales commission Fixed costs: Fixed manufacturing overhead Fixed selling and administrative costs 200,000 170,000 370,000 245,000 Income Job 418 used $20,000 in direct materials and $60,000 in direct labor. The job consisted of 389 units manufactured. Find the cost of Job 418
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