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Question 20 6 p University, Inc. uses a volume-based costing system that applies overhead cost based on set ups at $1,000 per set up.

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Question 20 6 p University, Inc. uses a volume-based costing system that applies overhead cost based on set ups at $1,000 per set up. The company is considering adopting an activity-based costing system with the following data: Activity. Cost Driver Rate Purchasing Purchase orders $5.00 Shipment Receiving 4.00 received Number of Machine setups 60.00 setups 7.00 Quality control Inspections The two jobs processed in the month of May had the following characteristics:

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