C02 · Lesson 10 of 22 · 15 min · 5 hands-on tasks
Activity-Based Costing
Trailhead spreads $9.6M of factory overhead by labour hours, so each E-Cargo carries $450. But E-Cargo bikes hog the paint shop, need tiny batches with many setups, and fill the inspectors' days. Trace overhead to the activities that cause it, and watch E-Cargo's overhead nearly double while City's falls.
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