Bob's Bicycles manufactures high-quality trail bikes. The company has two divisions: Painting and Assembly. Painting is fully

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Bob's Bicycles manufactures high-quality trail bikes. The company has two divisions: Painting and Assembly. Painting is fully automated, as each bike part is run through a paint-spraying machine. Assembly, on the other hand, is highly labourintensive, as most of the bike parts are assembled by hand. The company allocates overhead costs for the Painting Department based on machine hours and allocates overhead for the Assembly Department based on labour hours. The following are the budgeted overheads and estimated cost drivers for 2012 by department:

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Accounting For Managers Interpreting Accounting Information For Decision Making

ISBN: 9781118037966

1st Canadian Edition

Authors: Paul M. Collier, Sandy M. Kizan, Eckhard Schumann

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