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Unformatted text preview: labor is $8,680 (6,200 $1.40). Hayes also recognizes that some maintenance is fixed. The amounts reported for fixed costs are assumed for our example. The accuracy of budgeted overhead cost estimates can be greatly improved by employing activity-based costing. Illustration 20-10 Manufacturing overhead budget At Hayes Company, overhead is applied to production on the basis of direct labor hours. Thus, as Illustration 20-10 shows, the budgeted annual rate is $8 per hour ($246,400 30,800)....
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.
- Fall '11