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Jason Company is considering replacing equipment that originally cost $600,000. New equipment costs $500,000, and the old equipment can be sold for $400,000. What is the sunk cost in this situation?
a. $600,000
b. $200,000
c. $400,000
d. $500,000
Sweet Company applies overhead to jobs on the basis of 125% of direct labor cost. If job 107 shows $10,000 of manufacturing overhead apllied, how much was the direct labor cost on the job?
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