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Business, 04.04.2020 07:43 shauntleaning

Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two cost pools: materials handling and setup. The collected data follow: Standard Model Deluxe Model Number of machine hours 25,600 30,600 Number of material moves 580 880 Number of setups 90 530 Total estimated overhead costs are $368,360, of which $189,800 is assigned to the material handling cost pool and $178,560 is assigned to the setup cost pool. Required: 1. Calculate the overhead assigned to each product using the traditional cost system. 2. Calculate the overhead assigned to each product using ABC.

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Julio produces two types of calculator, standard and deluxe. The company is currently using a tradit...
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