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Marpole Enterprises has identified three cost pools to allocate overhead costs. The following estimates aro...

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Accounting

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Marpole Enterprises has identified three cost pools to allocate overhead costs. The following estimates aro provided for the coming year: (Click the icon to view the estimates of the cost pools.) The accounting records show the Bossman job consumed the following resources: (Click the icon to view the resources consumed for the Bossman job.) When selling prices are based on costs assigned using the single cost driver, direct labour hours, then the Bossman job A. may increase overall sales as other jobs will be cross-subsidized B. will contribute too little to profits, and Gregory Enterprises will not want to accept additional work from the company C. is fairly billed because resources are allocated uniformly to all jobs D. will likely seek to do business with competitors E. is grossly underbilled for the job, while other jobs will be unfairly overbilled Estimates of Cost Pools Resources Consumed

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