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SL 17 In its first year of operations a company produced and sold 70,000 units of Product A at a selling price of $20 per
SL 17 In its first year of operations a company produced and sold 70,000 units of Product A at a selling price of $20 per unit and 17,500 units of Product B at a selling price of $40 per unit. Additional information relating to the company's only two products is shown below: 3 points Direct materials Direct labor Manufacturing overhead Cost of goods sold Product A $436,300 $200,000 Product B $251,700 $104,000 Total $ 688,000 304,000 608,000 $1,600,000 8 00:27:56 The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows. Activity Manufacturing Overhead $213,500 157,500 120,000 117,000 $608,000 Product A 81,400 75 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product design (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Product B 71,100 300 Total 152, see 375 2. 1 NA NA The company's ABC implementation team also concluded that S50,000 and $100,000 of the company's advertising expenses could be directly traced to Product A and Product B. respectively. The remainder of its selling and administrative expenses $400 000 was organization-sustaining in nature. The company's activity-based costing system would allocate how much manufacturing overhead to Po Prey
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