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1. Compute the manufacturing overhead cost per unit for each product. 2. Compute the manufacturing cost per unit for each product Darby Corp. is considering
1. Compute the manufacturing overhead cost per unit for each product.
2. Compute the manufacturing cost per unit for each product
Darby Corp. is considering the use of activity-based costing. The following information is provided for the production of two product lines: Activity Cost Allocation Base Setup $ 105,000 Number of setups Machine maintenance $ 60,000 Number of machine hours Total indirect manufacturing costs $ 165,000 Product A Product B Direct labor hours 7,000 5,000 Number of setups 30 170 Number of machine hours 1,600 2,400 Direct material cost per unit $110 $120 Direct labor cost per unit $80 $60 Darby plans to produce 375 units of Product A and 250 units of Product BStep by Step Solution
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