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Question 3 3 pts Deano plc is investigating using an Activity-Based Costing (ABC) system to absorb production overhead into its three products. As a first
Question 3 3 pts Deano plc is investigating using an Activity-Based Costing (ABC) system to absorb production overhead into its three products. As a first step the company has analysed machine set-ups and identified that the cost driver for this activity is the number of batches produced. The budgeted machine set-up cost for the next year is 990,000 and other budgeted information is shown below: Konsa Luiz McGinn Product Production (units) Average batch size (units) 24,000 60.000 42.000 2,000 6,000 3.000 What is the machine set-up cost that would be attributed to each unit of Konsa (to 2 decimal places) using an ABC approach? O 7.86 O 3.71 45.00 O 7.50 O E13.75
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