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Snowy Company has two products, Snow and Ice products based on th unit of each product. The chief financial officer has suggested converting to activity-based

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Snowy Company has two products, Snow and Ice products based on th unit of each product. The chief financial officer has suggested converting to activity-based costing. costs are presently allocated to the two Using the data collected shown below, calculate the activity rates under activity based costing and apply overhead under activity based SNOW (show all work on your paper): costing to Product Actlvity Cost Driver Production Quality Control Number of inspections Shipping Total Overhead a) Calculate the activity rates for s 50,000 20 80,000 12 $90.000 30,000 15,000 220,000 Number of setups 28 Number of units shipped Production Quality control Shipping b) Apply overhead to SNOw Production Quality control Shipping

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