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Activity-Based Product Costing Davis Company produces two hair dryers: regular and deluxe. The company has four activities: machining, engineering, receiving, and inspection. Information on
Activity-Based Product Costing Davis Company produces two hair dryers: regular and deluxe. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Regular Deluxe Total Units produced 90,000 270,000 Prime costs $6,480,000 $32,400,000 $38,880,000 Machine hours 90,000 450,000 540,000 Engineering hours 400 3,600 4,000 Receiving orders 500 1,500 2,000 Inspection hours 600 1,200 1,800 Overhead costs: Machining $5,400,000 Engineering 2,360,000 Receiving 600,000 Inspecting products 180,000
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