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solve this one plz Question 2 (9 points) James Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for
solve this one plz
Question 2 (9 points) James Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Supervision of direct labour $320,000 I Machine maintenance $120,000 Facility rent $200,000 Total overhead costs $640,000 Cost driver Direct labour hours Machine hours Square metres of area Activity level 800,000 960,000 100,000 The accounting records show the Graham Job consumed the following resources: Cost driver Actual level Direct labour-hours 200 Machine-hours 1,600 Square metres of area 50 A) If James Enterprises uses an ABC system then what amount of indirect costs will be allocated to the Graham job? B) Should companies use ABC systems to allocate their overhead costs? Why or why notStep by Step Solution
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