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Multiple Choice Question 80 One of Stine Companys activity cost pools is machine setups, with estimated overhead of $600000.
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Answer #1

Activity Rate = Total Activity Cost/Total Activity

= 600,000/(400+600) = $600 per setup

Cost assigned under activity based costing = Activity rate*Activity level

Hence, cost assigned to sparklers = 600*400 = $240,000

Hence, the answer is $240000

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