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Question - Peggy Playground produces children's swing-sets. 4,500 swing-sets were produced in a recent production run. The run required 1,500 machine hours, and also required four "set-ups" of equipment. Final inspection required 75 hours of inspection activity. Estimated overhead is estimated at $25 per machine hour, plus $3,500 per "set-up" and $20 per inspection hour. Direct materials and direct labor total $500 per swing-set.
How to I assign the ABC to the swing-set?
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