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XYZ Manufacturing Co. uses activity-based costing to allocate overhead costs. The company identifies three activity cost pools: machine setup, material handling, and quality control. The
XYZ Manufacturing Co. uses activity-based costing to allocate overhead costs. The company identifies three activity cost pools: machine setup, material handling, and quality control. The total estimated overhead costs for each pool are $60,000, $80,000, and $100,000, respectively. Calculate the overhead rate for each activity cost pool based on the cost drivers: number of setups, number of material moves, and number of inspections performed.
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