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Bickham Cosmetics Company uses the following allocation rates from its activity-based costing system to assign overhead costs to products. Activity Allocation Rate Purchasing raw materials
Bickham Cosmetics Company uses the following allocation rates from its activity-based costing system to assign overhead costs to products. Activity Allocation Rate Purchasing raw materials $40 per purchase order Setting up machines for production $150 per set-up Inspecting finished products $25 per inspection Product Al uses the following: 17 purchase orders, 4 set-ups, and 12 inspections. How much overhead cost would be assigned to Product A1? Select one: A. $7,095 B. $1,580 C. $600 D. $215
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