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QUESTION 5 6 points Save Answer Trek Bicycles manufactures two models of mountain bikes, a standard and a deluxe model. The following activity and cost
QUESTION 5 6 points Save Answer Trek Bicycles manufactures two models of mountain bikes, a standard and a deluxe model. The following activity and cost information has been compiled: Product Number of Setups Number of Components Number of Direct Labor Hours 3 30 650 Standard Deluxe 7 50 150 Overhead costs $20,000 $60,000 Required: Explain the difference between the costs obtained from the traditional costing system and the ABC system. Explain which system provides a better estimate of costs and why. (6 marks)
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