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Question 4 Concord manufactures mattresses for the hotel industry. It has two products, Downy and Firm and total overhead of $492000. The company plans to
Question 4 Concord manufactures mattresses for the hotel industry. It has two products, Downy and Firm and total overhead of $492000. The company plans to manufacture 190 Downy mattresses and 250 Firm mattresses this year. In manufacturing the mattresses, the company must perform 720 material moves for the Downy and 280 for the Firm; it processes 115 purchase orders for the Downy and 85 for the Firm; and the company's employees work 2700 direct labour hours on the Downy product and 3300 on the Firm. Concord's total material handling costs are $300000 and its total purchasing costs are $192000 Using ABC, how much overhead would be assigned to the Downy product? 492000 326400 $246000 165600
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