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Concord Company manufactures two models of its hammock, the Superior and the Deluxe. The Superior model requires 10600 directCan you help me solve/understand this?

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Answer #1

Under ABC costing, the setup costs of $123,000 are allocated using the batch size.

Setup costs allocated to superior model using ABC costing = $123,000 * 200 / (200 + 100)

= $82,000

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