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Laramie Company is a steel fabricator, and job 325 consists of producing 500 steel supports for Richetti Company. Overhead is applied on the basis of direct labor hours, using a predetermined overhead rate of $20 per hour. Direct costs associated with Job 325 are: direct materials, $16,000; direct labor, 200 hours at $12 per hour.
Problem 1: Calculate the cost of Job 325.
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