The Pinewood Furniture Company Pty Ltd plans to manufacture two lines of chairs in the coming year-lounge and patio.The company is considering introducing an activity-based costing system.Given below are each activity,its cost and its related activity driver.The level of activity for the year is:
Under an activity-based costing system,what is the total cost of lounge chairs for the year?

A) $1 710 000
B) $1 410 000
C) $890 000
D) $1 150 000
Correct Answer:
Verified
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