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1. Calculate the Predetermined Overhead Rate if management believes that Order Processing is the main cost driver. 2. Use the Predetermined Overhead Rate from Requrement

1. Calculate the Predetermined Overhead Rate if management believes that Order Processing is the main cost driver. 2. Use the Predetermined Overhead Rate from Requrement 1 to determine the profitability of each customer. 3. Use Activity Based Costing to determine the Activity Rates for each customer activity. 4. Use the Activity Rates to calculate the profitability of each customer.
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1. Calculate the Predetermined Overhead Rate if management believes that Order Processing is the main cost driver. 2. Use the Predetermined Overhead Rate from Requrement 1 to determine the profitability of each customer. 3. Use Activity Based Costing to determine the Activity Rates for each customer activity. 4. Use the Activity Rates to calculate the profitability of each customer

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