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common fixed costs

June 20, 2017 mfadmin Managerial Accounting

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common fixed costs

INDIRECTLY unavoidable

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Previous Post:“The Work in Process inventory account of a manufacturing firm shows a balance of $3,000 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $500 and $300 for direct materials, and charges of $400 and $600 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of:”,”Work-in-Process = Direct materials + Direct labor + Manufacturing overhead applied$3,000 = ($500 + $300) + ($400 + $600) + x$1,200 = x $1,200 ÷ $1

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