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Costing: Cost Flows through T-Accounts cation? Delta Parts, Inc., recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has
Costing: Cost Flows through T-Accounts cation? Delta Parts, Inc., recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates: Activity Centers Materials handling Quality inspections. Machine setups Running machines. Cost Drivers Pounds of material handled Number of inspections Number of machine setups Number of machine-hours Rate per Cost Driver Unit $18 per pound $225 per inspection $2,700 per setup $22.50 per hour (L.0.6)
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