Question: Computing indirect manufacturing costs per unit traditional and ABC The following information is provided for Orbit Antenna Corp, which manufactures two products Lo-Gain antennas and
Computing indirect manufacturing costs per unit traditional and ABC The following information is provided for Orbit Antenna Corp, which manufactures two products Lo-Gain antennas and Hi-Gain antennas for use in remote areas Activity Cost Allocation Base Setup Machine maintenance Total indirect manufacturing costs $ 58,000 30,000 Number of setups Number of machine hours $88.000 Hi-Gain Lo-Gain 1,200 40 3,000 Total 5,000 80 5,000 Direct labor hours 3,800 Number of setups 40 Number of machine hours 2,000 Orbit Antenna plans to produce 125 Lo-Gain antennas and 225 Hi-Gain antennas. Requirements 1. Compute the indirect manufacturing cost per unit using direct labor hours for te single plantwide predetermined overhead allocation rate 2. Compute the ABC indirect manufacturing cost per unit for each product. Step-by-step solution e here to search
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