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Compute the Cost of Job order costing system
Glass Industries uses a job-order costing system. The molding department applies overhead based on machine hours, while the assembly department applies overhead based on direct labor hours. The company made the following estimates at the beginning of the current year.
Molding
Assembly
Manufacturing overhead cost
$1,200,000
$800,000
Machine hours
10,000
4,000
Direct labor hours
12,000
16,000
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