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Pairing Company has the following cost drivers identified as A through F for determining product manufacturing overhead costs.
(A) Number of pieces of equipment
(B) Number of direct material purchase orders
(C) Number of production runs
(D) Square feet of warehouse space
(E) Number of machine hours
(F) Square feet of factory space
For each of the following activity cost pools, choose the letter of the most appropriate cost driver for each cost pool.
Income Distributions
Payments, often periodic, received by investors from assets they own, such as dividends from stocks or interest from bonds.
Rate of Return
The increase or decrease in the value of an investment during a set period, represented as a proportion of the investment's original price.
Income Distributions
Payments made to investors from the earnings derived from the investments within a fund, such as dividends or interest payments.
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