Finney Inc. has conducted an analysis of overhead costs related to one of its product lines using

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Finney Inc. has conducted an analysis of overhead costs related to one of its product lines using a traditional costing system (volume-based) and an activity-based costing system. Here are its results.

Explain how a difference in the overhead costs between the two systems may haveoccurred.

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Accounting Tools for business decision making

ISBN: 978-0470095461

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Authors: kimmel, weygandt, kieso

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Question Posted: Mar 01, 2012 11:29 PM

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Finney Inc. has conducted an analysis of overhead costs related to one of its product lines using

Question:

Traditional Costing $600,000 ABC Sales revenues Overhead costs: Product RX3 Product Y12 34,000 36,000 70,000 $600,000 $50,000 70,000 20,000

Step by Step Answer:

Under ABC overhead costs are shifted from the highvolume products to the lowvol...View the full answer

Accounting Tools for business decision making

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