Question 1 (5 points) The Fallon Company manufactures a variety of handcrafted bed frames. The...
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Accounting
Question 1 (5 points)
The Fallon Company manufactures a variety of handcrafted bed frames. The companys manufacturing activities and related data for the current year follow.
| Activity cost pool | Estimated cost | Cost driver used as allocation base | Estimated volume for cost driver |
| Materials handling | $400,000 | Number of parts | 800,000 parts |
| Cutting | 1200,000 | Machine hours | 40,000 hours |
| Assembly | 3000,000 | Direct labour hours | 150,000 hours |
| Wood staining | 1320,000 | Number of frames stained | 60,000 frames |
| Total cost | 5,920,000 |
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