A manufacturer produces two types of storage cabinets: Small and Large Small Large Direct material...
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Accounting
A manufacturer produces two types of storage cabinets: Small and Large Small Large Direct material cost $52.50 $82 Direct labour cost $30 $30 Budgeted volume (units) 8,000 16,360 The management accountant has determined that the firm's overhead can be identified with three activities: manufacturing setups, machine processing and product shipping. Data on the number of setups, machine hours and outgoing shipments, which are the activities' three respective cost drivers, follow: Small Large Total Setups 50 40 90 Machine hours 16,000 22,000 38,000 Outgoing shipments 100 80 180 The firm's total
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