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Problem 1: Small Manufacturing Company has a standard overhead rate of $42 per hour. The labor rate is $20 per hour. Overhead is applied based on direct labor hours. Jobs B-1 and B-2 were completed during the month of March. Small incurred 140 hours of indirect labor during the month. Job B-1 used 82 direct labor hours and $3650 worth of direct material used. Job B-2 used 70 direct labor hours and $3,500 worth of direct material. What is the total cost of job B-2?
Financial Statement Analysis and Preparation
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