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Contra Costa Coffee Roasting Company of Alamo, California roasts two unique blends of coffee beans: Jump Start and Mid - Dy Break. These two unique
Contra Costa Coffee Roasting Company of Alamo, California roasts two unique blends of coffee beans: Jump Start and MidDy Break. These two unique blends are sold and shipped exclusively to gourmet coffee shops across the country.
Jump Start MidDay Break
Signature Blend Afternoon Blend Total Cost Roasting Machine Setups $
Roasting Inspections $
Labor hours
The company is considering switching from one overhead rate based on labor hours to ABCActivityBased Costing
Instructions
Perform the following analyses for these two components of overhead:
Compute total roasting machine setups and roasting inspection costs assigned to each product, using a single overhead rate.
Compute total machine setups and inspection costs assigned to each product, using activitybased costing.
Comment on your findings. I am struggling with this part the most.
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