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Z+ Ltd’s overhead consists of two types of expenditure, namely machine running costs and rent. Z+ Ltd has adopted ABC method to allocate costs and have calculated that machine running costs are to be allocated at $7.25 per machine hour and rent allocated at $10.65 per square metre of space occupied. Z+ Ltd produces Badges and Cadges. What further information is required to determine the machine running cost that is to be allocated to Badges?
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