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Management Accounting After consulting with the production personnel, he prepared the following information on cost drivers and the estimated volume for each driver. The cost
Management Accounting
After consulting with the production personnel, he
prepared the following information on cost drivers and the estimated volume for each
driver.
The cost accountant also determined how much overhead costs were incurred in each of
the four activities as follows:
Activity Overhead costs
Machining
Setup
sh
Machining
sh
Total Machining department overhead
sh
Assembly
Assembly
sh
Inspection
sh
Total Assembly department overhead
sh
Total overhead costs
sh
Required:
a Determine the cost driver rate for each activity cost pool.
b Use the activitybased costing method to determine the unit cost for each product.
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