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Munar Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Machining, Order Filling,

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Munar Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools-Machining, Order Filling, and Other. The costs in those activity cost pools appear below: Machining..... Order Filling.. Other ...... $5,800 $15,700 $5,500 Machining costs are assigned to products using machine-hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: MHS (Machining) Orders (Order Filling) Product Z3 Product X6. 1,900 8,100 100 900 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Product Z3 Product X6 Sales (total).... $64,100 $70,600 Direct materials (total). $28,800 $18,000 Direct labor (total)..... $29,100 $30,200

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