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Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires80machine setups, Wind requires60setups, and Fire requires180setups. Thomsen has identified an activity cost pool
Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires80machine setups, Wind requires60setups, and Fire requires180setups. Thomsen has identified an activity cost pool with allocated overhead of $300000for which the cost driver is machine setups. How much overhead is assigned to each product?
EarthWindFire
a$75000$56250$168750
b$62500$46875$140625
c$56250$100000$143750
d$100000$100000$100000
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