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Management of TEX Manufacturing Co. has decided to implement an Activity-Based costing (ABC) system. As...

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Accounting

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Management of TEX Manufacturing Co. has decided to implement an Activity-Based costing (ABC) system. As part of the implementation, four activity cost pools have been identified. They are: (a) Organization-sustaining activities, (b) Indirect manufacturing activities, (c) Customer support activities, and (d) Order completion activities. The overhead costs expected for the company overall are comprised of: (a) Administration $500,000; (b) Wages and salaries $300,000; and (c) Other overhead costs $200,000 After a thorough analysis of the company's activities, it was determined that the company overhead resources are consumed by the identified activities as follows: After careful analysis, management has arrived at five possible activity measures and their associated total activity quantity for the year: Required: 1.) Complete the first-stage allocation of company-wide overhead costs to activity cost pools. Show all calculations and be sure to show the total cost allocated to cach activity cost pool. (4 marks)

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