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Assume a company that uses activity-based costing (ABC) has only two products A and B. The company does not have any organization-sustaining activities or unused

Assume a company that uses activity-based costing (ABC) has only two products A and B. The company does not have any organization-sustaining activities or unused capacity costs. The companys total manufacturing overhead cost of $56,000 has been allocated to the three activities shown below:

Setups Machining Packing Orders
Activity measure quantity: Product A 20 1,000 150
Activity measure quantity: Product B 20 ? 350
Overhead cost per activity cost pool ? ? $ 10,000
Activity rate $ 150 per setup $ 8 per MH ?

If the company decided to use a plantwide overhead rate with machine-hours as the allocation base, what would be its plantwide overhead rate?

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