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Activity-Based Costing for Manufacturing Industries with Hierarchical Cost Structure : A manufacturing company identifies three activity cost pools: Setup, Machining, and Quality Control. The total

Activity-Based Costing for Manufacturing Industries with Hierarchical Cost Structure: A manufacturing company identifies three activity cost pools: Setup, Machining, and Quality Control. The total overhead costs are $300,000, and the cost drivers for each activity are as follows:

Setup: Number of setups (estimated at 50 setups)

Machining: Number of machine hours (estimated at 6,000 hours)

Quality Control: Number of inspections (estimated at 150 inspections) Allocate the overhead costs to each activity using activity-based costing with a hierarchical cost structure.

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