Question: Sanchez Co. has three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $75,000, $132,000, and

Sanchez Co. has three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $75,000, $132,000, and $22,000, respectively. The expected annual use in each department is 500 setups, 4,000 machine hours, and 2,750 inspections.

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