Question: Basic Company uses activity-based costing. Assume the predetermined overhead allocation rates are $0.90 per machine hour for mixing department and $2.20 per test for sampling
Basic Company uses activity-based costing. Assume the predetermined overhead allocation rates are $0.90 per machine hour for mixing department and $2.20 per test for sampling department. Assume that each unit requires 3 machine hours and 2 tests.\ \ What is the mixing and sampling cost assigned to one unit?\ \ ANSWER\ Unselected\ $0.90 for mixing; $4.40 for sampling\ \ Unselected\ $2.70 for mixing; $4.40 for sampling\ \ Unselected\ $.90 for mixing; $2.20 for sampling\ \ Unselected\ $2.70 for mixing; $2.20 for sampling
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