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A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each
A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activities: Activity Budgeted Cost Activity Cost Driver Budgeted Activity Product A Product B Activity 1 $ 101,000 Square feet 4,400 4,200 Activity 2 $ 76,000 Units produced 5,900 6,900 Activity 3 $ 121,000 Setups 3,900 6,650 Annual production and sales level of Product A is 35,700 units, and the annual production and sales level of Produc
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