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Doede Corporation uses activity-based costing to compute product margins. In the first stage, the
activity-based costing system allocates two overhead accounts--equipment depreciation and
supervisory expense--to three activity cost pools--Machining, Order Filling, and Other--based on
resource consumption. Data to perform these allocations appear below: Overhead costs:
Equipment depreciation $ 70,000 Supervisory expense $ 13,300 Distribution of Resource
Consumption Across Activity Cost Pools:

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Doede Corporation uses activitybased costing to compute pro.pdf

  • 1. Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts--equipment depreciation and supervisory expense--to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation $ 70,000 Supervisory expense $ 13,300 Distribution of Resource Consumption Across Activity Cost Pools: