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Question - Comfort Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winton High School band jacket job.
Company
Winton High School Job
Direct materials
$53,000
$2100
Direct labor
$15,000
$500
Manufacturing overhead costs
$40,000
Machine-hours
80,000 mh
800 mh
Required - What amount of manufacturing overhead costs will be allocated to this job?
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