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A company incurs $2880000 of overhead each year in three departments: Processing, Packaging, and Testing. The company performs 800 processing transactions, 200000 packaging transactions,
A company incurs $2880000 of overhead each year in three departments: Processing, Packaging, and Testing. The company performs 800 processing transactions, 200000 packaging transactions, and 2000 tests per year in producing 400000 drums of Oil and 600000 drums of Sludge. The following data are available: Department Processing Packaging Testing Expected Use of Driver Cost 800 $1140000 200000 1140000 2000 600000 Production information for the two products is as follows: Oil Sludge Department Expected Use of Expected Use of Driver Driver Processing 300 500 Packaging 120000 80000 Testing 1600 400 The amount of overhead assigned to Sludge using ABC is
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