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Assume that a pet food manufacturer is considering adding two types of pet food to ts existing product line Research had determined that good demand exists for dog food in and cat

Assume that a pet food manufacturer is considering adding two types of pet food to ts existing product line. Research had determined that good demand exists for dog food in and cat 1/2pound cans. The co the following partial list of activities, costs, and activity drivers expected for the next year: Activity Cost Driver Expected Costs Number of batches made Handling $105,000 materials Weight of finished Storage costs $820,000 product. Cat Food Dog Food 200,000 units 100,000 units Production Volume 150 batches Batches made 200 batches are the overhead rates used to apply material handling (MH) and storage costs (S using activity-based costing? A. MH $300/batch; SC $2.73/unit. B. MH $300/batch; SC $.20/lb. C. MH $525/batch; SC 205/unit. D. MH $700/batch; SC 205/lb.

 

Mar 20 2020 View more View Less

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