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Denton Company manufactures two products, product Fand product G. The company uses activity based costing to compute unit product cost. Data relating to the company's
Denton Company manufactures two products, product Fand product G. The company uses activity based costing to compute unit product cost. Data relating to the company's three activity centers are given below: Estimated overhead costs Total expected activity. Expected activity, Product F Expected activity, Product G Activity. center Machine set up Purchase orders $2,000 200 50 150 $4,000 2,000 500 1,500 $8,000 8,000 4,000 4,000 General factory Total $110 $14.000 Using the activity based costing approach, total overhead applied for product Fis: a. $5,500. b. $8,500. c. $10,200. d. $14,000
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