Homework Answers
| Total ABC Overhead | ||
| J25P | J40X | |
| Overhead: | ||
| Assembly Building | ||
| Assembling | $192,000 | $912,000 |
| Setting up machine | 26,910 (39,000-31%) | 252,540 (366,000-31%) |
| Handling material | 27,000 | 126,000 |
| Packaging Building: | ||
| Inspecting and packing | 312,000 | 120,000 |
| Shipping | 138,000 | 276,000 |
| Total ABC overhead | $695,910 | $1,686,540 |
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After reviewing the new activity-based costing system that Nancy Chen has implemented at IVC's CenterPoint manufacturing facility, Tom Spencer, the production supervisor, believes that he can reduce production costs by reducing the time spent on machine setups. He has spent the last month working with employees in the plant to change over the machines more quickly with the same reliability. He plans to produce 103,000 units of the Sport model and 41,500 units of the Pro model in the first...
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