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Question 1. Question 2. Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire
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Question 2.
Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Thomsen has identified an activity cost pool with allocated overhead of $ 420000 for which the cost driver is machine setups. How much overhead is assigned to each product? Earth Wind Fire $ 140000 $ 140000 $ 140000 $ 78750 $ 140000 $ 201250 $ 105000 $ 78750 $ 236250 $ 87500 $ 65625 $ 196875 For its inspecting cost pool, Ellsworth, Inc. expected overhead cost of $ 360000 and 4000 inspections. The actual overhead cost for that cost pool was $ 440000 for 5000 inspections. The activity-based overhead rate used to assign the costs of the inspecting cost pool to products is $ 88 per inspection. $ 72 per inspection. $ 110 per inspection. $ 90 per inspectionStep by Step Solution
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