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Activity-Based Costing in Manufacturing at Adidas Requirements: Identify cost drivers for Adidas' footwear and apparel manufacturing processes. Implement an ABC system to allocate overhead costs

Activity-Based Costing in Manufacturing at Adidas

Requirements:

  1. Identify cost drivers for Adidas' footwear and apparel manufacturing processes.
  2. Implement an ABC system to allocate overhead costs to different product lines based on production runs and machine hours.

Product Line

Production Runs

Machine Hours

Footwear

40

12,000

Apparel

60

10,000

  1. Calculate the total cost per unit for each product line using ABC allocations.
  2. Analyze product profitability and recommend strategies to improve cost efficiency and pricing.

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