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Activit1 - are packaged one per package During the year...

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Activity-Based vs. Traditional Costing Assume the Busy Ball Company makes two types of bouncing balls; one has a hollow center and the  other has a solid center. The same equipment is used to produce the balls in different runs. Between  batches, the equipment is cleaned, maintained, and set up in the proper configuration for the next  batch. The hollow center balls are packaged with two balls per package, and the solid center balls 
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Unformatted text preview: are packaged one per package. During the year, Busy Ball expects to make 1,000,000 hollow center balls and 2,000,000 solid center balls. The overhead costs incurred have been allocated to activity pools as follows: Purchasing of materials $200,000 Setup of machines 350,280 Packaging 300,000 Testing 270,000 Cleaning and maintenance 288,540 Total overhead costs $1,408,820...
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