Custom's makes two types of hats: polyester (poly) and silk.
There are two cost pools: setup, with an estimated $100,000 in
overhead, and inspection, with $25,000 in overhead. Poly is
estimated to have 750,000 setups and 160,000 inspections, while
silk has 250,000 setups and 70,000 inspections. How much overhead
is applied to each product?
Custom's makes two types of hats: polyester (poly) and silk. There are two cost pools: setup, with an estimated $100,000
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