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GreenTech Manufacturing is evaluating its production costs using Activity-Based Costing (ABC) methodology. The company identifies three cost pools: Setup Costs, Machine Processing Costs, and Material
GreenTech Manufacturing is evaluating its production costs using Activity-Based Costing (ABC) methodology. The company identifies three cost pools: Setup Costs, Machine Processing Costs, and Material Handling Costs. The following data pertains to the cost pools:
- Setup Costs: $50,000
- Machine Processing Costs: $200,000
- Material Handling Costs: $100,000
Calculate the allocation rate for each cost pool if the company allocates costs based on the number of setups, machine hours, and material moves, respectively.
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