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Johns Company manufactures chairs using an activity-based costing system to allocate manufacturing overhead. Compute the...

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Accounting

Johns Company manufactures chairs using an activity-based costing system to allocate manufacturing overhead. Compute the activity cost allocation rate for materials handling based on the following data.

Estimated Indirect Estimated Quantity

Activity Activity Cost Allocation Base of Allocation

Materials handing $20,000 Number of parts 50,000 parts

Assembly $35,000 Number of parts 140,000 parts

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