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a . Calculate the cost of producing each boat using the current costing system. b . Calculate the cost of producing each boat using the
a Calculate the cost of producing each boat using the current costing system.
b Calculate the cost of producing each boat using the new ABC system. Assume that Purchasing is charged out based on the number of purchase orders, Machine operating costs based on machine hours and production support on number of employees.
c The company received an offer to supply of the Clippers unit at a selling price of $ per unit. Should they accept the offer if management requires a return on sales using both the traditional and ABC methods? Explain
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