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Echols Company is a wholesale distributor that uses ABC for all of its overhead costs. Activity Cost Pool Activity Rate Setting Up Equipment $92.50 per
Echols Company is a wholesale distributor that uses ABC for all of its overhead costs.
Activity Cost Pool | Activity Rate |
Setting Up Equipment | $92.50 per setup |
Assembly | $25,600/customer order |
Inspection | $738/inspection |
Data concerning two products is given below:
Product S | Product T | |
Number of setups | 340 | 15 |
Number of orders | 28 | 1 |
Number of inspections | 4 | 3 |
How much overhead cost would be assigned to Product T using the ABC costing system?
Question 9 options:
$18,907.00 | |
$31,735.60 | |
$29,201.50 | |
$22,498.20 |
Question 10 (4 points)
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