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Frederick Group uses ABC to account for its chrome wheel manufacturing process . Company managers have identified 4 manufactuing activities that incur manfucaturing overhead cost:
Frederick Group uses ABC to account for its chrome wheel manufacturing process. Company managers have identified 4 manufactuing activities that incur manfucaturing overhead cost: material handeling, machine setup, insertion of parts and finishing.
Job 420 used 200 parts required 3 setups and consumed 110 finishing hours
Job 510 used 500 parts required 4 setups and consumed 320 finishing hours
Data Table Total Budgeted Manufacturing Overhead Cost Allocation Base Activity Materials handling Machine setup Insertion of parts Finishing 9000 Number of parts 3.500Number of setups 45.000" ill Number: of parts. 8000 Felthitg drect labat hotks $ 135.500
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