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One inc. is a manufacturing company and uses an activity-based costing system. The compamy incurs $310,000 in overhead costs each year across its three activity
One inc. is a manufacturing company and uses an activity-based costing system. The compamy incurs $310,000 in overhead costs each year across its three activity cast pools; production (5180,000), inspection (\$80,000), and packing (\$50.000). The activity drivers are machine hours for the production activity, the number of inspections for the inspection activity, and the number of onders packed for the packing activity. The company's management accounting team analyzed their annual expected capacities and found that the expected capacities are: 4,000 machine-hours, 400 inspections, and 1,000 orders. Information about the compary's two products is as follows: How much overhead is assigned to Product A this year? The company calculates its cost driver rates based on annual expected capacity
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