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Alpha Company has two service departments A and B and two production departments 1 and...

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Accounting

Alpha Company has two service departments A and B and two production departments 1 and 2. Service department A shares its overhead costs based on the number of employees and service department B based on the Infrastructure area. The following information is available:

(1)10,000 (2)12,000

It is desirable to divide the overhead of service departments and calculate the overhead absorption rate of production departments based on the mathematical method.

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