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A company has two products: standard and deluxe. The company expects to produce 38,181 Standard units and 41,949 Deluxe units. It uses activity-based costing
A company has two products: standard and deluxe. The company expects to produce 38,181 Standard units and 41,949 Deluxe units. It uses activity-based costing and has prepared the following analysis showing budgeted cost and cost driver activity for each of its three activity cost pools. Budgeted. Budgeted Activity of Cost Driver Standard Deluxe OH Cost Activity 1: Purchasing Activity 2: Designing $ 93,000 2,500 Purchases 5,250 Purchases $ 92,000 4,500 Designs 5,500 Designs Activity 3: Shipping $ 87,000 3,000 Orders 2,800 Orders
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