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Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and
Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Basic Advanced Total Units produced 110,000 330,000 Prime costs $8,140,000 $35,640,000 $43,780,000 Machine hours 110,000 550,000 660,000 Engineering hours 400 3,600 4,000 Receiving orders 200 600 800 Inspection hours 700 1,400 2,100 Overhead costs: Machining $8,580,000 Engineering 2,320,000 Receiving 256,000 Inspecting products 399,000
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