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ABC Manufacturing produces two models: A and B. The models are produced using one continuous process. Four activities have been identified: machining, setups, receiving and
ABC Manufacturing produces two models: A and B. The models are produced using one continuous process. Four activities have been identified: machining, setups, receiving and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows: Product Machine Setups Receiving Packing Hours Orders Orders A 5 000 150 200 400 B 10 000 250 800 2000 Costs $100,000 $50,000 $28000 $25,000 Calculate a rate for each activity by using the associated driver. (10 marks)
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