Question: Refer to the quantitative analysis that you did in problem 38. Write a report to management stating why product-line profits differ using activity based costing

Refer to the quantitative analysis that you did in problem 38. Write a report to management stating why product-line profits differ using activity based costing compared with the current approach, which allocates overhead based on labor hours. Indicate whether activity-based costing provides more accurate information and, if so, how. Indicate in your report how the use of labor-based overhead allocation could result in Marathon management making suboptimal decisions.

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