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The following question expands upon Problem 6 regarding ABC. Product X was allocated additional overhead = $33,250 after management switched to an ABC system. Overhead
The following question expands upon Problem 6 regarding ABC. Product X was allocated additional overhead = $33,250 after management switched to an ABC system. Overhead was previously allocated using only direct labor hours of which Product X uses 25 %. Under ABC overhead is now allocated using both direct labor hours and machine hours. Overhead = $175,000 was assigned to the Machine Pool. What is Product X's machine use %
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