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Determine the allocated factory overhead cost for the month

Question: Determine the Allocated Factory Overhead cost for the month of August using the following information. The allocation base is direct labor cost.

Estimated Direct Labor Used yearly: $125,000

Estimated Indirect Costs (factory overhead) yearly: $62,500

Direct Labor Used during August: $55,000

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Accounting Basics: Determine the allocated factory overhead cost for the month

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