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

Activity-Based Costing in Manufacturing at Reebok

Requirements:

  1. Identify cost drivers for Reebok's 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

30

8,000

Apparel

50

6,000

  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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