Problem 2. Fulcrum Industries manufactures dining chairs and tables. The following information is...
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Problem 2. Fulcrum Industries manufactures dining chairs and tables. The following information is available: Dining Chairs 200 Tables 600 Machine setups Inspections Labor hours Total Cost $48,000 $72,000 250 470 2,600 2,400 Fulcrum is considering switching from one overhead rate based on labor hours to activity-based costing. Instructions Perform the following analyses for these two components of overhead: a. Compute total machine setups and inspection costs assigned to each product, using a single overhead rate. b. Compute total machine setups and inspection costs assigned to each product, using activity-based costing. C. Comment on your findings
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