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A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Product 2 45 A
A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing:
Product 2 45 A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Estimated Activity Activity Center Product 1 Estimated cost Machine Setups 15 $10,200 Assembly Parts 1,500 1,500 71,700 Packaging Pieces 54,450 Machine Hours per Unit Production Volume 500 400 4 3 750 1,500 A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places, Product Product 2 Allocation per unit B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places. Product 1 Product 2 Allocation per units Step by Step Solution
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