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ark for BACC360 Malak Be X + /NDYyMTgxNTMwNTc3 Open with Google Docs Problem Six: HI Company manufactures two products: Product A and Product B The
ark for BACC360 Malak Be X + /NDYyMTgxNTMwNTc3 Open with Google Docs Problem Six: HI Company manufactures two products: "Product A" and "Product B" The expected annual manufacturing overhead is $1,200,000. The company's managers identified three-activity cost pools and related cost drivers and accumulated overhead by cost pools as follows: Activity cost pool Estimated Overhead Cost driver Expected use of cost drivers by product Expected use of cost drivers Product A Product B Setting up Number of Setups $500,000 200,000 setups 120,000 80,000 machines Direct Labor 600,000 180,000 300,000 DL hours Assembling 120,000 Hours Number of 100,000 25,000 40,000 inspections Inspection 15,000 Inspections Instructions: a. Using the traditional method; compute the overhead cost assigned to each product, assuming that direct labor hours is used to allocate overhead costs
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