ABC company makes turbo-encabulators, customized to satisfy each customer's order. They split overhead into five pools, each
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Question:
ABC company makes turbo-encabulators, customized to satisfy each customer's order. They split overhead into five pools, each with its own activity driver (direct labor for manufacturing, direct labor for assembly, direct material dollars, machine time for manufacturing and machine time for assembly). Each pool includes both fixed and variable costs. They calculate a predetermined overhead rate from their budget, but allocate overhead to each turbo-encabulator based on actual driver use. For each question, indicate whether the(partial) descriptions of the accounting system are accurate:
ABC Company employs an actual costing system.
True
False
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