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The activity-cost-driver for the oven would be 220,000/1500=146.67. Remember the product cost will consist of direct material, direct labor, and overhead. The overhead is just
The activity-cost-driver for the oven would be 220,000/1500=146.67. Remember the product cost will consist of direct material, direct labor, and overhead. The overhead is just the packaging and oven. Now, using the ABC system, for buttercream cookies, compute the estimated overhead costs per 1,000 cookies.
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