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1) The Good Oil Company is located in London, Ontario. The company is budgeting $1,500,000 of overhead costs this year in their three departments,
1) The Good Oil Company is located in London, Ontario. The company is budgeting $1,500,000 of overhead costs this year in their three departments, A, B, and C. The company performs 1,000 Department A transactions, 250,000 Department B transactions, and 2,000 Department C transactions per year in producing 600,000 gallons of vegetable oil and 400,000 gallons of olive oil. The following data are available: Department A B C Use of Cost Driver 1,000 250,000 2,000 Production information for the vegetable oil is as follows: Department A BC Use of Cost Driver 400 100,000 800 Cost $500,000 $800,000 $200,000
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