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Spin Cycle Company uses three activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs
Spin Cycle Company uses three activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead costs are as follows: product design $41, 100; machining $323, 100; and material handling $119,000. The cost drivers and expected use are as follows. Compute the predetermined overhead rate for each activity. (Round overhead rate per machine hours to 2 decimal places, e.g. $2.25 and all other answers to 0 decimal places, e.g. $1, 225.) Classify each of these activities as unit-level, batch-level, product-level, or facility-level
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