Allocate the overhead costs to the products A, B, and C using activity-based costing with the following
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Question:
Allocate the overhead costs to the products A, B, and C using activity-based costing with the following cost drivers and cost pools:
Cost Pools | Total Cost | Activity Driver | Product A | Product B | Product C |
Setup | $30,000 | Number of setups | 10 | 20 | 15 |
Material Handling | $40,000 | Direct labor hours | 500 | 700 | 600 |
Inspection | $20,000 | Number of inspections | 50 | 30 | 40 |
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