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Business, 18.02.2021 23:30 lordcaos066

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 26,700 31,700 Number of material moves 635 935 Number of setups 105 585 Total estimated overhead costs are $379,700, of which $172,700 is assigned to the material handling cost pool and $207,000 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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