One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. - 2854

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Request Description

One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers?

A.   $150,000 B.   $60,000 C.   $90,000 D.   $75,000 

Solution Description

One of Astro Company's activity cost pools is machine setups, with estimated overhead of