Core Concepts Of Accounting Information Systems, 14th Edition
Core Concepts Of Accounting Information Systems, 14th Edition
14th Edition
ISBN: 9781119441465
Author: Mark G. Simkin
Publisher: WILEY
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Chapter 14, Problem 9DQ
To determine

Explain the need of a relationship table to link the sales table and salesperson table in the given situation with reasons.

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Jigar Industries uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead was $900,000, and its estimated level of activity was 40,000 direct labor-hours. The company's direct labor wage rate is $15 per hour. Actual manufacturing overhead amounted to $940,000, with actual direct labor cost of $620,000. For the year, manufacturing overhead was__. (Over-applied or Under-applied)
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