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QUESTION
Simpson Co. produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups.
Simpson Co. produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Simpson has identified an activity cost pool with allocated overhead of $480,000 for which the cost driver is machine setups. How much overhead is assigned to each product?
