Determining activity base for assembly

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Shubelik Company is changing to an activity-based costing method. They have determined that they will use three cost pools. They are set-ups, inspections, and assembly. Which of the following would be used as the activity base for assembly?

1. Inventory cost

2. Inspections

3. Direct labor hours

4. Number of units to be produced

Reference no: EM13150230

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