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ABC Company applies an activity-based costing system with the following data for the month. Activity Cost Pools Estimated Overhead Cost Cost Driver Levels Purchase orders

ABC Company applies an activity-based costing system with the following data for the month.

Activity Cost Pools Estimated Overhead Cost Cost Driver Levels

Purchase orders 94,000 1,000 orders

Machine setups 120,000 200 setups

Electricity 80,000 160,000 kilowatt hours

Compute the activity-based overhead rate per machine setup.

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