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Carltons Kitchens three cost pools and overhead estimates are as follows:Activity Cost Pools, Cost Driver, Estimated Overhead, Use per Product A, and Use per Product
Carltons Kitchens three cost pools and overhead estimates are as follows:Activity Cost Pools, Cost Driver, Estimated Overhead, Use per Product A, and Use per Product B, respectively. Machine setups, Setups, $128,000, 5,000, 3,000. Assembly, Number of parts, 105,000, 25,000, 45,000. Machine maintenance, Machine hours, 150,000, 12,500, 37,500. Compare the overhead allocation using: The traditional allocation method The activity-based costing method (Hint: the traditional method uses machine hours as the allocation base. The ABC overhead for product A is how much higher than the traditional overhead for product A
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