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Dartmouth Corporation manufactures two models of office chairs, a standard and a deluxe model. The following activity and cost information has been compiled:
Number of setups and number of components are identified as activity-cost drivers for overhead. Assuming an activity-based costing system is used, what is the total amount of overhead costs assigned to the standard model?
Inventoriable Costs
Costs that are initially recorded as inventory on the balance sheet and expensed as cost of goods sold when the product is sold.
Work in Process Inventory
This inventory category includes items that are in the production process but are not yet completed.
Cost of Goods Manufactured
The total production cost of goods completed during a specific period, including materials, labor, and overhead.
Total Manufacturing Costs
The cumulative cost of materials, labor, and overhead expended on the production of goods.
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