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For Herro Company, the predetermined overhead rate is 130% of direct labor cost. During the month, $410,000 of factory labor

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Answer #1

Direct labour cost:

= $410,000 - $80,000

= $330,000

Applied overhead:

= $330,000 X 130%

= $429,000

Applied overhead is debited to work in process.

$429,000

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