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Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity based costing system allocates two overhead accounts- equipment depreciation and

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Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity based costing system allocates two overhead accounts- equipment depreciation and supervisory expense to three activity cost pools-Machining Order Filling, and Other based on resource consumption. Datorto perform these allocations appear below. Overhead costs: Equipment depreciation Supervisory expense $ 98,000 $ 13,400 Distribution of Resource Consumption Across Activity Cost Pools Other 0.60 0.20 Activity Cost Pools Machining Order Filling Equipment depreciation 0.20 9.60 0.10 In the second stage, Machining costs are aligned to products ching machine hours (ms) and Order Filling costs are assigned to products in the number of orders. The costs in the other activity cost pool are not assigned to products 0.30 Supervisory expense Activity Orders (Order Filling Product w 112 MS Cachining) 6,00 14,700 20,760 Product 1,087 Total Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margim

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