Zackery Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its...

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Zackery Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated lathe. Additional information is provided below for the most recent month: Estimates at the beginning of the month: $ 7,452 Estimated total fixed manufacturing overhead Capacity of the lathe 230 hours Actual results: $ 7,452 Actual total fixed manufacturing overhead Actual hours of lathe use 180 hours The manufacturing overhead applied is closest to: O O O O $9,900 $5,832 $7,748 $7,452 Zackery Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated lathe. Additional information is provided below for the most recent month: Estimates at the beginning of the month: $ 7,452 Estimated total fixed manufacturing overhead Capacity of the lathe 230 hours Actual results: $ 7,452 Actual total fixed manufacturing overhead Actual hours of lathe use 180 hours The manufacturing overhead applied is closest to: O O O O $9,900 $5,832 $7,748 $7,452

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Calculation of applied manufacturing overhead The formula for applied man... View the full answer