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S Groups Calendar Ost Acco... Overview Chapter- x BAU BAUGO BAU Library Plans Resources Status and follow-up Participants More Magic Company makes three types
S Groups Calendar Ost Acco... Overview Chapter- x BAU BAUGO BAU Library Plans Resources Status and follow-up Participants More Magic Company makes three types of radios for small aircraft-model A, model B, and model C. The manufacturing operations are mechanized and there is no direct labor. Manufacturing overhead costs are significant, and Orlando has adopted an activity-based costing system. Direct materials costs per unit for each model are as follows: Model A cess Model B cess Model C X df df $28 $32 $40 Onur Magic Company has three activities-assembly, materials management, and testing. The cost driver for assembly is machine hours. The cost driver for materials management is number of parts, and the cost driver for testing is the number of units of product. Total costs and production volumes for the year 2012 were estimated as follows: Cost Allocation Total cost of Total Numbers of Activities Base of Each activities Cost Drivers If Activity Assembly $780,000 Machine hours 120,000 Materials $120,000 Parts 80,000 management Testing $22,500 Units 5,000 < < 15:45 6.02.2021
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