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Doreen Design Company makes two products (standard and deluxe) and has traditionally allocated manufacturing overhead on the basis of machine hours. Data for the two
Doreen Design Company makes two products (standard and deluxe) and has traditionally allocated manufacturing overhead on the basis of machine hours. Data for the two products for the upcoming year is as follows: Management is considering an ABC system. In addition to machine hours the company has identified machine set up as an additional driver. Information on the two drivers are presented below: The total manufacturing costs for the deluxe product line under activity-based costing is: The total manufacturing costs for the deluxe product line under activity-based costing is: Select one: $720,000 $1,000,000 $990,000 $2,000,000
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