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XYZ Ltd. uses activity-based costing (ABC) to allocate overhead costs. The company identified two cost pools: machine-related costs and setup costs. If the total overhead
XYZ Ltd. uses activity-based costing (ABC) to allocate overhead costs. The company identified two cost pools: machine-related costs and setup costs. If the total overhead costs for the year were $200,000, and the activity drivers and rates were as follows: 10,000 machine hours at $12 per hour and 200 setups at $800 per setup, calculate the overhead cost allocated to a product requiring 800 machine hours and 10 setups.
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