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Science220 Science220
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A year ago
Camilla, Inc. uses activity-based costing to cost its two products: Standard and Deluxe. The company has provided the following data relating to its activities:

Cost PoolsEstimated Cost
Machine (machine-hours)$144,000
Cutting (number of cuts)536,000
Sales (number of orders)108,000


Estimated Activity
StandardDeluxe
Machine hours1,0007,000
Number of cuts3,0005,000
Number of orders7,0002,000

Required:

a.What is the activity rate for the sales cost pool?
b.If actual activity is the same as that estimated, what is the total amount of overhead
cost
allocated to the Deluxe product?
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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tpriest1tpriest1
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A year ago
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