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Simplifying the ABC System: Equally Accurate Reduced ABC Systems Selected activities and other information are provided for Patterson Company for its most recent year of
Simplifying the ABC System: Equally Accurate Reduced ABC Systems Selected activities and other information are provided for Patterson Company for its most recent year of operations. Expected Consumption Ratios Activity 7. Inserting dies 8. Purchasing materials 1. Developing test programs 3. Testing products Driver Number of dies Number of purchase Quantity 2,000,000 2,500 10,000 20,000 Wafer A Wafer B 0.70 0.30 0.20 0.25 0.60 $1,500,000 0.80 orders Engineering hours Test hours 0.75 0.40 $1,500,000 $3,000,000 ABC assignments Total overhead cost
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