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Acme Enterprises has identified the following overhead costs and cost drivers for the coming year:Budgeted direct labor cost was $200,000 and budgeted direct material cost was $300,000. The following information was collected on three jobs that were completed during the month:


Required:
a. If the company uses traditional costing and allocates overhead using direct labor cost, how much overhead cost should be assigned to Job A, B and C?
b. If the company uses activity-based costing (ABC), how much overhead cost should be assigned to Job A, B, and C?

 

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