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Question 8 YesChairs Inc. produces 3 types of chairs for 3 sizes of buyers. Overhead costs incurred during the manufacturing process include: Machine maintenance
Question 8 YesChairs Inc. produces 3 types of chairs for 3 sizes of buyers. Overhead costs incurred during the manufacturing process include: Machine maintenance bill Quality control bill $ $ 89,000 69,000 These two bills are allocated to the production of chairs in the following manner: Chairs Small Medium Large Production Machine Hours Quality Inspections 3,900 5,900 4,900 2,900 4,900 5,990 2,490 4,290 8,900 9,290 15,090 19,790 a) What is the total OH cost per chair using the ABC system? b) What is the total OH cost per chair using the traditional system?
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