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Marion Manufacturing Uses an Activity-Based Costing System Machine-Related Overhead Would Be Classified as a
A)unit-Level Activity

question 195

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Marion Manufacturing uses an activity-based costing system. The company produces Model X and Model Y. Information relating to the two products is as follows:  Model X  Model Y  Units produced 20,00040,000 Machine hours 8,00010,000 Direct labor hours 14,00016,000 Engineering labor (hours)  1,0001,400 Setups 4060 The following costs are reported:  Engineering $48,000 Setups 100,000 Machine-related overhead 144,000\begin{array}{l}\begin{array} { l r r } & \text { Model X } & \text { Model Y } \\\text { Units produced } & 20,000 & 40,000 \\\text { Machine hours } & 8,000 & 10,000 \\\text { Direct labor hours } & 14,000 & 16,000 \\\text { Engineering labor (hours) } & 1,000 & 1,400 \\\text { Setups } & 40 & 60\end{array}\\\text { The following costs are reported: }\\\begin{array} { l l } \text { Engineering } & \$ 48,000 \\\text { Setups } & 100,000 \\\text { Machine-related overhead } & 144,000\end{array}\end{array} Machine-related overhead would be classified as a

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