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Tesla, Inc. has identified three cost pools for its manufacturing overhead costs: Setup costs of $70,000, Production costs of $150,000, and Inspection costs of $80,000.

Tesla, Inc. has identified three cost pools for its manufacturing overhead costs: Setup costs of $70,000, Production costs of $150,000, and Inspection costs of $80,000. The cost drivers are setup hours, production hours, and inspection hours, respectively. If a particular product required 10 setup hours, 20 production hours, and 5 inspection hours, allocate the overhead costs to each activity.

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