Now assume the company uses activity-based costing to apply overhead cost to products. Three activity centers...
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Now assume the company uses activity-based costing to apply overhead cost to products. Three activity centers have been identified as follows: Annual Events or Transactions Activity Center Cost Driver Traceable Costs Product A Product B Total Machine Setups # of Setups $360,000 50 100 150 Special Processing CPU Minutes $180,000 12,000 0 12,000 General Factory Direct labor-hours $1.260,000 9,000 27,000 36,000 Total $1,800,000 Calculate the cost per unit for each product using activity-based costing. Direct Materials Direct Labor Manufacturing Overhead Total B Now assume the company uses activity-based costing to apply overhead cost to products. Three activity centers have been identified as follows: Annual Events or Transactions Activity Center Cost Driver Traceable Costs Product A Product B Total Machine Setups # of Setups $360,000 50 100 150 Special Processing CPU Minutes $180,000 12,000 0 12,000 General Factory Direct labor-hours $1.260,000 9,000 27,000 36,000 Total $1,800,000 Calculate the cost per unit for each product using activity-based costing. Direct Materials Direct Labor Manufacturing Overhead Total B
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