Product costing in an activity-based costing system Fortunado, Inc., uses activity-based costing…

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Product costing in an activity-based costing system

Fortunado, Inc., uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for 2012 and their allocation bases are as follows:

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