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5 pp Saved Carter Company manufactures two products, Deluxe and Regular, and uses a traditional two-stage cost allocation system. The first stage assigns all factory

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Saved Carter Company manufactures two products, Deluxe and Regular, and uses a traditional two-stage cost allocation system. The first stage assigns all factory overhead costs to two production departments, A and B, based on machine hours. The second stage uses direct labor hours to allocate overhead to individual products For the current year the firm budgeted $1.500,000 total factory overhead cost. The $1,500,000 was for the planned levels of machine and direct labor hours shown in the following table. ProductionProduction Machine hours Direct labor hours 6,080 38,98 24,000 15,888 The following information relates to the firm's operations for the month of January Units produced and sold Unit cost of direct naterials Hourly direct labor kage rate Direct labor hours in Department A per unit Direct labor hours in Department B per unit 1,289 150$75.80 S 25 S30 380 Carter Compony is considering implementing on activity based costing system. its information for activity cost anelysis for the current year tant has collected the following Budgeted Overhead Budgeted Driver Consumption Quantity Deluxe Regulan tivity Cost Dri Material movement10,500 lumber of production runs Hachine setups 403.0023.00 30 750 38.00 75.0

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