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View Policies Current Attempt in Progress Kevin Hall has been studying his department's profitability reports for the past six months. He has just completed
View Policies Current Attempt in Progress Kevin Hall has been studying his department's profitability reports for the past six months. He has just completed a managerial accounting course and is beginning to question the company's approach to allocating overhead to products based on machine hours. The current department overhead budget of $1,028,060 is based on 51,403 machine hours. In an initial analysis of overhead costs. Kevin has identified the following activity cost pools. Cost Pool Product assembly Machine setup and calibration Product inspection Raw materials storage Expected Cost Expected Activities $ 495,000 45,000 machine hours 397,600 5,600 setups 74,460 1,460 batches 61,000 305,000 pounds $ 1,028,060
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