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Assume a company manufactures only two products-14,000 units of Product C and 6,000 units of Product D. It is considering implementing an activity-based costing (ABC)
Assume a company manufactures only two products-14,000 units of Product C and 6,000 units of Product D. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additional information is available for the company as a whole and for Products C and D: Activity Cost Pool Machining Machine setups Product design Activity Measure Machine-hours Number of setups Number of products Product C 9,000 50 1 Estimated Overhead Cost Expected Activity 15,000 MH Product D 6,000 150 1 $ 300,000 $ 150,000 $ 78,000 Activity Measure' Machine-hours Number of setups Number of products ing the ABC system, how much total overhead cost would be assigned from all of the activities to Product D? 200 Setups 2 Products Assume a company manufactures only two products 14,000 units of Product C and 6,000 units of Product D, It is considering implementing an activity-based costing ( ABC ) system that allocates all of its manufacturing overhead to three cost pools. The following additional information is available for the company as a whole and for Products C and D: ng the ABC system, how much total overhead cost would be assigned from all of the activities to Product D
Assume a company manufactures only two products-14,000 units of Product C and 6,000 units of Product D. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additional information is available for the company as a whole and for Products C and D: Activity Cost Pool Machining Machine setups Product design Activity Measure Machine-hours Number of setups Number of products Product C 9,000 50 1 Estimated Overhead Cost Expected Activity 15,000 MH Product D 6,000 150 1 $ 300,000 $ 150,000 $ 78,000 Activity Measure' Machine-hours Number of setups Number of products ing the ABC system, how much total overhead cost would be assigned from all of the activities to Product D? 200 Setups 2 Products
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