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Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and...

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Accounting

Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are:

Potterii sells its products to large box stores and recently added a retail line of products to sell directly to consumers. These estimates are to be used in determining the overhead allocation rate for ABC:

What would be the predetermined rate for each cost pool?

Compute the overhead rate for each activity.

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