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17 Oct
2020

Luxury Goods Pty Ltd allocates manufacturing overhead to work in process on the basis of machine hours.

Category:ACADEMICIAN

SOLUTION AT Australian Expert Writers

Luxury Goods Pty Ltd allocates manufacturing overhead to work in process on the basis of machine hours. On 1 January of the current year, there were no balances in work in process or finished goods inventories. The following estimates were included in the budget for the current year: Total estimated manufacturing overhead $300 000 Total estimated machine hours 40 000 During January, the firm worked on the following production jobs: B81: 1 600 machine hours J76: 2 400 machine hours M49: 1 000 machine hours During January, job numbers B81 and J76 were completed, and job number B81 was sold. The actual manufacturing overhead incurred during January was $30 000.

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