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McDonald's Corporation has identified two cost pools for its manufacturing overhead costs: Kitchen setup costs of $50,000 and Cooking costs of $100,000. The cost drivers
McDonald's Corporation has identified two cost pools for its manufacturing overhead costs: Kitchen setup costs of $50,000 and Cooking costs of $100,000. The cost drivers are kitchen setup hours and cooking hours, respectively. If the company produced 1,000 meals requiring 200 setup hours and 300 cooking hours, allocate the overhead costs to each activity.
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