Use the following information to complete Exercises below:
Integrated Chip Corporation has a significant level of manufacturing overhead. After preparing their budget for the next year, management expects the following overhead costs (the cost driver for each overhead cost pool is also shown):
The expected activity for the year for various cost drivers is:
The company is considering accepting a significant production contract. Estimates for the contract are as follows:
NOTE: Round all per-unit costs to nearest cent.
-How much overhead should be allocated to the contract based on Activity-Based Costing?
Correct Answer:
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