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The XYZ Manufacturing Company Has Two Support Activity Pools, Accounting

question 6

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The XYZ Manufacturing Company has two support activity pools, Accounting and Human Resources. Costs for each totaled $380,000 and $190,000 respectively. 10% of the Human Resource costs are consumed by the Accounting department and 15% of the Accounting costs are consumed by the human resource department. The company uses the reciprocal method of allocating support costs. The total costs for the Accounting department which will be allocated to line activities and cost objects will be:

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