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Use the following information for questions 1-5 Weissman Corporation manufactures two products: Product E16S and Product PI7K The company currently has a traditional costing system
Use the following information for questions 1-5 Weissman Corporation manufactures two products: Product E16S and Product PI7K The company currently has a traditional costing system that assigns manufacturing overhead based on direct labor hours. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as. a.whole and for Products E16S and P17K Activity Cost Pool Machining Machine setups Product design Order size Activity Measure Machine-hours Number of setups Number of products Total Cost Total Activity s 220,000 11,000 MHs S 240,000 74,000 400 setups 2 products Direct labor-hours s 270,000 10,000 DHLs Activity Measure Product E16S Product P17K 7,000 270 4,000 130 Machine-hours Number of setups Number of products Direct labor-hours 3,000 7,000
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