acc_561_week_3_dq_1.docacc_561_week_3_dq_1.doc

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Suppose a company uses machine hours as a cost-allocation base for factory overhead. How does the company computer a budgeted overhead application rate? How does it compute the amounts of factory overhead applied to a particular job?Applied overhead is computed using the predetermined overhead rate; it is the amount of (estimated) costs applied to be allocated (required) for certain jobs. On the other hand, actual overhead is computed after the manufacturing process is finished, which provides the actual amount of total costs it required in order to finish the job. These amounts can then

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