4. The Aerospaces Ltd. has manufacture two products with data as presented below: Annual overhead of Aerospace's
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Question:
4. The Aerospaces Ltd. has manufacture two products with data as presented below:
Annual overhead of Aerospace's Ltd. based on each cost pool as follow:
Required:
Calculate overhead cost per unit for each product of ABC and XYZ using
a. Traditional method
b. Activity based costing
c. How would you explain the result coming from these two methods to the decision maker? Which number do you recommend should be relied on to make a decision?
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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