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Dawson Co. manufactures two products, Regular and Deluxe. Overhead costs consist of machining ($2,500,000) and assembly ($1,250,000). The following recent data are available:
Regular Deluxe
Direct labor hours 10,000 15,000Machine hours 10,000Number of parts 90,000 160,000
Problem 1: The overhead cost allocated to Deluxe using a single overhead rate (based on number of parts) and using activity-based costing, respectively, are:????
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