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Rusties Company recently implemented an activity - based costing system. At the beginning of the year, management made the following estimates of cost and activity
Rusties Company recently implemented an activitybased costing system. At the beginning of
the year, management made the following estimates of cost and activity in the company"s five
activity cost pools:
The expected activity for the year was distributed among the company's two products as follows:
Required:
In class on Tuesday we calculated the activity rates for the activity cost pools shown
above. Using that ABC data, determine the total amount of overhead cost assigned to each
product.
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