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    Allocating Fixed Costs

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    Herrestad Company does produce and sell two products. Please see the attachment and use ABC to allocate all fixed costs to the two products.

    Show computations, discuss the results in 2 to 4 pages. Please include answers to all the questions.

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    Solution Summary

    This solution shows how to allocate fixed costs to two products, and how to prepare a segmented income statement in good form.