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Answer the Following Questions Using the Information Below:
Eagle Eye

Question 146

Multiple Choice

Answer the following questions using the information below:
Eagle Eye Company produces two types of lenses-L7 and L9.
 Single Indirect-Cost  Pool System  ABC System  Total direct costs $77,500$58,000 Total indirect costs $37,500 (a)   Total costs assigned to L7 $62,000$49,500 Total costs assigned to L9  (b)  $65,500\begin{array} { | l | c | c | } \hline & \begin{array} { l } \text { Single Indirect-Cost } \\\text { Pool System }\end{array} & \text { ABC System } \\\hline \text { Total direct costs } & \$ 77,500 & \$ 58,000 \\\hline \text { Total indirect costs } & \$ 37,500 & \text { (a) } \\\hline \text { Total costs assigned to L7 } & \$ 62,000 & \$ 49,500 \\\hline \text { Total costs assigned to L9 } & \text { (b) } & \$ 65,500 \\\hline\end{array}
-What is the total indirect costs (a) under ABC system?


A) $53,000
B) $57,000
C) $57,500
D) $40,000

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