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Tunes & More, Inc. manufactures speakers and receivers and uses activity-based costing. The following information is available. Activity Cost Pool Estimated Overhead Expected Use of
Tunes & More, Inc. manufactures speakers and receivers and uses activity-based costing. The following information is available.
Activity Cost Pool | Estimated Overhead | Expected Use of Cost Driver per Activity | |
Ordering | $168,000 | 24,000 orders | |
Soldering | $192,000 | 64,000 machine hours | |
Inspecting | $900,000 | 120,000 labor hours | |
Packing | $840,000 | 56,000 boxes |
Compute the activity-based overhead rates.
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