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Fitzgerald Inc. uses the ABC method to allocate overhead to production. The following is a list of cost pools and the allocation base for each pool.
Cost pool Allocation base
Material handling $56,000 80,000 lbs. of material
Maintenance $40,000 20,000 machine hour
Factory supplies $20,000 50,000 labor hours
Fitzgerald Inc. used 12,000 lbs. of material, 6000 machine hours and 8,000 labor hours for the job.
Calculate total overhead cost allocated for the job.
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