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Olive Company makes dessert pies for national convenient food chains. Olive Company is considering using ABC costing and has the following activity cost pools and
Olive Company makes dessert pies for national convenient food chains. Olive Company is considering using ABC costing and has the following activity cost pools and information available:
Activities Estimated Overhead Costs Estimated Activity
Material handling measured by batches $ batches
Mixing measured by batches $ batches
Packaging measured by units $ units
Maintenance measured by # of setups $ setups
Olive Company currently uses a plantwide overhead rate based on total estimated machine hours of hours.
Based on their estimates for ABC costing, compute the allocated cost for all overhead costs for Job using the following information about the job.
# of units in the job
# of units in each batch
# of setups required to complete the job
# of machine hours
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