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avery construction assembles residential houses. it uses a job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support). direct labor-hours is the allocation base for assembly support costs. in december 2019, avery budgets 2020 assembly-support costs to be $8,700,000 and 2020 direct labor-hours to be 145,000. at the end of 2020, avery is comparing the costs of several jobs that were started and completed in 2020.
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