Question: A company identifies two activities: material handling and machine setup. The cost drivers are number of parts (10,000) and number of setups (200), with cost

A company identifies two activities: material handling and machine setup. The cost drivers are number of parts (10,000) and number of setups (200), with cost pools of $250,000 and $180,000 respectively. Product A uses 2,500 parts and 50 setups. Calculate the activity-based overhead allocated to Product A.

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