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The wireless phone manufacturing division of a consumer electronics company uses activity-based costing. For simplicity, assume that its accountants have identified only the following three

The wireless phone manufacturing division of a consumer electronics company uses activity-based

costing. For simplicity, assume that its accountants have identified only the following three activities

and related cost drivers for indirect production costs:

Activity Cost Driver

Materials handling Direct-materials cost

Engineering Engineering change notices

Power Kilowatt hours

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