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Arthur Company has two products: S and D. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and
Arthur Company has two products: S and D. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools:
ActivityExpected ActivityCost PoolEstimated Ovhd. CostProduct SProduct DTotalActivity 1$20,000100400500Activity 2$14,600500250750Activity 3$90,0003002,7003,000
The annual production and sales of Product S is 4,547 units. The annual production and sales of Product D is 7,913.
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