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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 Hours Setups Receiving Orders, Packing Orders A 5 000 100 250 500 B 10 000 200 750 2500 Costs $100,000 $50,000 $18000 $20,000 Calculate a rate for each activity by using the associated driver. (10 marks)
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