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Question(s) / Instruction(s):



P Cocoa Pet Corporation manufactures two models of grooming stations, a standard and a deluxe model. The following activity and cost information has been compiled:

Number ofProduct

Number of Setups

Number ofComponents

Number of Direct Labor Hours

Standard

3

30

650

Deluxe

7

50

150

Overhead Costs

$20,000

$60,000



Instructors Q - Explain the difference between the costs obtained from the traditional costing system and the ABC system.


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