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JP Inc. makes three products and is considering changing to activity based costing system. The quality inspection costs make up R14 140 of total production
JP Inc. makes three products and is considering changing to activity based costing system. The quality inspection costs make up R14 140 of total production overhead cost. Driver analysis for JP Inc. revealed the following information: Product A Product B Product C Budgeted production 1 000 1 200 800 Production unit per production run 5 4 2 Quality Inspection per production run 10 20 30 The total cost attributed to Product C for quality inspections using an activity based costing system is R
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