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Question 9 FANCYchairs Inc. produces 3 types of chairs for 3 sizes of buyers. Overhead costs incurred during the manufacturing process include: Machine maintenance bill
Question 9 FANCYchairs 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 $ $ 1,195,000 1,166,000 These two bills are allocated to the production of chairs in the following manner: Chairs Small Medium Large Production 4,500 5,500 6,600 16,600 Machine Hours 15,000 16,000 17,000 48,000 Quality Inspections 25,000 26,000 27,000 78,000 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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