competitive.

$7.$ Suppose that Jacob learned about duration$-$based costing after completing the pilot study. According to the plant manager of the phone plant used for the pilot study, the cycle time for the Regular model is $0\mathrm{.}50$ hours and that of the Deluxe model is one hour. Calculate the unit cost for each model using duration$-$based costing.

The unit costs $of$ the Regular Models $is$ $$,21\mathrm{.}30$

The unit costs $of$ the Deluxe Models $is$ $$,46\mathrm{.}75$

How do unit costs compare to the ABC costs?

DBC is much simpler and less $$ costly to use than ABC and produces about the same unit costs.

Assignment Score: $91\mathrm{.}18\%$

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