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Abc printing company uses a job order cost system

30/04/2021 Client: muhammad11 Deadline: 2 Day

ABC Company uses job-order costing and has assembled the following cost data for the production and assembly of item X:

Direct manufacturing labor wages...........................................$35,000

Direct material used.............................................................70,000

Indirect manufacturing labor....................................................4,000

Utilities...............................................................................400

Fire insurance........................................................................500

Manufacturing overhead applied..............................................11,000

Indirect materials..................................................................6,000

Depreciation on equipment..........................................................600

Based on the above cost data, the manufacturing overhead for item X is:

a. $500 over allocated.

b. $600 under allocated.

c. $500 under allocated

d. $600 over allocated

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