Comfy Chair Company makes two types of chairs, a lounge chair and a folding beach...
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Accounting
Comfy Chair Company makes two types of chairs, a lounge chair and a folding beach chair. The company uses a job-order costing system and applies overhead on the basis of direct labor hours. Comfy Chair expects to produce 40,000 lounge chairs and 100,000 beach chairs next year.
Comfy Chair has been considering changing to an activity based costing system. The company has reported the following results from the first-stage cost allocations for a year
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