In a job-costing system,a manufacturing firm typically uses an indirect-cost rate to estimate the ________ allocated to a job.

Question

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In a job-costing system, direct labor and direct materials can be easily identified and assigned to each job. However, manufacturing overhead costs, such as rent, utilities, and depreciation, cannot be assigned directly to a job. Instead, a predetermined indirect-cost rate is used to estimate the manufacturing overhead costs allocated to a job.

In a Job-Costing System,a Manufacturing Firm Typically Uses an Indirect-Cost