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ABC Corporation manufactures two products, Product X and Product Y. The following activities are involved: Setup: $10,000 Machine operation: $20,000 Inspection: $15,000 Packaging: $5,000 Product
ABC Corporation manufactures two products, Product X and Product Y. The following activities are involved:
- Setup: $10,000
- Machine operation: $20,000
- Inspection: $15,000
- Packaging: $5,000 Product X requires 20 setups, 500 machine hours, 100 inspections, and 200 packaging activities. Product Y requires 30 setups, 700 machine hours, 150 inspections, and 250 packaging activities. Allocate the overhead costs to each product using activity-based costing.
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