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Cost Allocation Methods : A service company provides consulting services to clients and incurred overhead costs of $100,000. The company has two projects: Project X,
Cost Allocation Methods: A service company provides consulting services to clients and incurred overhead costs of $100,000. The company has two projects: Project X, which generated revenue of $300,000 and incurred direct costs of $150,000, and Project Y, which generated revenue of $200,000 and incurred direct costs of $100,000. Calculate the overhead allocation for each project using the activity-based costing (ABC) method.
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