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Artivo Co. produces two types of pens: ballpoint pens and fountain pens. They have recently implemented an ABC system. An analysis of Artivo's indirect costs
Artivo Co. produces two types of pens: ballpoint pens and fountain pens. They have recently implemented an ABC system. An analysis of Artivo's indirect costs reveals three key activities: ink mixing, molding plastic, and pen assembly. The company collected the following information related to the indirect cost activities for the year 2015: Information related to Artivo's production for the year 2015 is as follows: Required: (a) Calculate the three indirect cost rates under the ABC system for the year 2015. (b) Calculate the total amount of allocated indirect costs for the Ballpoint Pens under the ABC system for the year 2015. (c) Calculate the total amount of allocated indirect costs for the Fountain Pens under the ABC system for the year 2015. (d) Calculate the cost of one Ballpoint Pen under the ABC system for the year 2015. (e) Calculate the cost of one Fountain Pen under the ABC system for the year 2015
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