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Determine the allocated factory overhead cost for the month

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

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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