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Question - During the year ended 30 June 2019, Fast Fones Industries Pty Ltd incurred the following costs.
Direct labour $706,100
Direct material 2,848,600
Factory overhead 6,836,640
The company charges factory overhead costs to work in process inventory and finished goods inventory using an overhead application rate based on direct materials costs.
Required -
1. Determine the company's overhead application rate.
2. ?If the company's ending finished goods inventory of $791,100 included $24,100 of direct labour costs, determine the inventory's material and overhead costs.
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