Frenchys makes two types of scarves: polyester (poly) and silk. There are two cost pools: setup, with
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Frenchy’s makes two types of scarves: polyester (poly) and silk. There are two cost pools: setup, with an estimated $120,000 in overhead, and inspection, with $30,000 in overhead. Poly is estimated to have 800,000 setups and 450,000 inspections, while silk has 400,000 setups and 150,000 inspections. How much overhead is applied to each product?
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To allocate overhead costs to each product polyester and silk scarves well use the activitybased cos...View the full answer
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