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Sassafras Inc. has conducted an analysis of overhead costs related to one of its product lines using a traditional costing system (volumebased) and an activity-based
Sassafras Inc. has conducted an analysis of overhead costs related to one of its product lines using a traditional costing system (volumebased) and an activity-based costing system. Following are its results: Identify differences between costing systems. Traditional Costing ABC Sales revenues $600,000 $600,000 Overhead costs: Product RX3 $ 34,000 $ 50,000 Product Y12 36,000 20,000 $ 70,000 $ 70,000 Explain how a difference in the overhead costs between the two systems may have occurred.
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