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Assume that the Oregon Ice Cream Company is considering the costs of two of their product linesice cream sandwiches and dessert bars. The company identified
Assume that the Oregon Ice Cream Company is considering the costs of two of their product linesice cream sandwiches and dessert bars. The company identified the following partial list of activities, costs, and activity drivers expected for the next year. Activity Expected Costs Cost Driver Extrusion costs $ 637,500 Number batches made Packaging costs $ 44,000 Number of units made Ice Cream Sandwiches Dessert Bars Production volume 350,000 units 200,000 units Batches made 400 batches 350 batches How much overhead cost will be assigned to the ice cream sandwich product line using activity-based costing (ABC)? Multiple Choice $28,000 $433,682 $340,000 $850.08 $368,000
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