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In its first year of operations a company produced and sold 70,000 units of Product A at a selling price of $20 per unit and

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In its first year of operations a company produced and sold 70,000 units of Product A at a selling price of $20 per unit and 17,500 units of Product B at a selling price of $40 per unit. Additional information relating to the company's only two products is shown below: Product A $436,300 $200,000 Product B $251,700 $104,000 Direct materials Direct labor Manufacturing overhead Cost of goods sold Total $ 688,000 304,000 608,000 $1,600,000 The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows: Activity Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product design (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $213,500 157,500 120,000 117,000 $608,000 Product A 81,000 75 1 NA Product B 71,500 300 1 NA Total 152,500 375 2 NA The company's ABC implementation team also concluded that $50,000 and $100,000 of the company's advertising expenses could be directly traced to Product A and Product B, respectively. The remainder of its selling and administrative expenses (5400,000) was organization-sustaining in nature. The company's activity based costing system would allocate how much manufacturing overhead to Product A? Multiple Choice 5203100 Activity Product B 71,500 Manufacturing Overhead $213,500 157,500 120,000 117,000 $608,000 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product design (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Product A 81,000 75 1 NA 300 Total 152,500 375 2 NA 1 NA The company's ABC implementation team also concluded that $50,000 and $100,000 of the company's advertising expenses could be directly traced to Product A and Product B, respectively. The remainder of its selling and administrative expenses ($400,000) was organization-sustaining in nature. The company's activity-based costing system would allocate how much manufacturing overhead to Product A? Multiple Choice $203,100 $200,100 S209.900 $204.900

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