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Question - The balance of the estimated warranty liability account was $ 13,050 on January 1, 2019 and $ 18,300 on December 31, 2019. Based on an analysis of warranty claims during the past several years, this year's warranty provision was established at 1.5% of sales, and sales during the year were $ 1.410.000.
a) What amount of warranty expense will appear on the income statement for the year ended December 31, 2019.
b) What were the actual costs of servicing products under warranty during the year?
In recent years, wages have ranged from a low of 96,000 to a high of 180,000 while the average was 130,000. What is the actual overhead rate as a percentage
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