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Magic Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its overhead costs: Wages and
Magic Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its overhead costs: Wages and salaries $ 420,000 Depreciation 240,000 Utilities 220,000 Total $ 880,000 The distribution of resource consumption across the three activity cost pools is given below: Activity Cost Pools Total Fabricating Order Processing Other Wages and salaries 10% 75% 15% 100% Depreciation 5% 50% 45% 100% Utilities 30% 35% 35% 100% How much overhead in total would be allocated
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