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Please answer. Thurman Brothers Construction manufactures and installs standard and custom- made cabinetry for residential homes. Last year, the company incurred $600,000 in overhead costs
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Thurman Brothers Construction manufactures and installs standard and custom- made cabinetry for residential homes. Last year, the company incurred $600,000 in overhead costs when a total of 10,000 direct labor hours were incurred. After implementing activity-based costing (ABC), the company's accountant identified the following related information Proportion of Overhead Cost 30% Activity Material delivery and Number of handling Inspections Allocation Base deliveries Number of inspections Hours of supervisor time Number of purchase orders 25% Supervision 20% Purchasing 25% The number of activities for standard and custom-made cabinets is as follows: Standard Custom- made 700 400 Number of deliveries Number of inspections Hours of supervisor time Number of purchase orders 500 600 1,000 2,000 800 400Step by Step Solution
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