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Common costing system can be a two-phase course of action. In the primary phase, corporation incurred each of the overhead prices for the manufacturing department and then in the second phase overhead Price tag was assigned on the basis of production operate-labor Value. The labor operate expense of $1 was leading to overhead expense of $four.
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The process of pumps was identical as valves, it demanded five components like machining and assembly. After the completion of the process, the product or service was delivered to seven industrial use this link distributors. High competition Within this solution was resulting in selling price decrement.
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