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Business, 22.02.2021 19:30 hermine40

Franklin, Inc uses activity-based costing. The company produces X and Y. Information relating to the two products is as follows: X Y
Units produced 38,000 50,000
Machine-hours 15,000 17,000
Direct labor-hours 16,000 24,000
Materials handling (number of moves) 8,000 12,000
Setups 10,000 14,000
The following costs are reported:
Materials handling $160,000
Labor-related overhead 480,000
Setups 240,000
Labor-related overhead costs assigned to product X are:
A. $192,000
B. $232,000
C. $288,000
D. $272,500

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