American fabrics has budgeted overhead costs of 990000 it

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Reference no: EM13593508

American Fabrics has budgeted overhead costs of $990,000. It has allocated overhead on a plantwide basis to its two products using direct labor hours which are estimated to be 450,000 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are: cutting and design. Overhead allocated to the cutting cost pool is $360,000 and $630,000 is allocated to the design cost pool.

Reference no: EM13593508

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