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Addison develops software for internet applications. The market is very competitive, and Addison's competitors continue to introduce new products at low prices Addison offers a

Addison develops software for internet applications. The market is very competitive, and Addison's competitors continue to introduce new products at low prices Addison offers a wide variety of software-from simple programs that enable new users to create personal webpages to complex commercial search engines. Like most software companies, Addison's raw material costs are insignificant. based costing study Addison has just hire (Click the icon Bequirements Requirement 1. Compute the cost allocation rate for each activity Determine the formula and then compute the cost allocation rate for each activity (Round your answers to the nearest cent.) Appl Dev Content prod Testing Activity overhead rate application line hour Requirement 2. Use the activity-based cost allocation rates to compute the indirect cost of each unit of X-Page and X-Secure (Hint Compute the total activity costs allocated to each product X-Page Applications development X-Secure Content production Testing Total costs Number of units Per unit cost Requirement 3. Addison's original single-allocation-based costing system allocated indirect costs to products at $48 per programmer hour X-Page requires 16,000 programmer hours while X-S system. Then, compute the indirect cost per unit for each product First, compute the total indirect costs allocated to X-Page and X-Secure under the original single-allocation-based system Select the formula and then enter the amounts and calculate the indirec Product X Page x X-Secure THE Choose from any list or enter any number in the input fields and then continue to the next question Indirect cost allocated is Question: 10 pts 21 of 25 (1 complet ddson develops software for internet applications. The market is very competitive, and Addison's competitors continue to introduce new products at low prices ddoon offers a wide variety of software-from simple programs that enable new users to create personal webpages to complex commercial search engines. Le anost software companies, Addison's raw material costs are insignificant based casting shuty Moral and Cre identify the finge Addon has theed Nicole Marant university graduate in accounting Ma Click the icon to view the information Beautements Requirement 3. Addison's original single-allocation-based costing system allocated indirect costs to products at $46 per programmer hour X-Page requires 16.000 programmer hours, while X-Secure requires 24.000 program hours Compute the ystem. Then compute the indirect cost per unit for each product First compute the total indirect costs allocated to X-Page and X-Secure under the original single allocation-based system Select the formula and then enter the amounts and calculate the indirect cost located Product XPage Indirect cost alocated X-Secure D Now compute the indirect cost per unit for each product under the original single alocation-based system Begin with X-Page and then compule X-Secure Round the cost per unit to the a Total indirect costs allocated Number of units X.Page X.Secure Per un cast Requirement 4. Compare the activity-based coats per unit to the costs from the simpler original system. How have the unit costs changed? Explain why the costs changed as they did The original system The original system allocated X.Page and X-Secure overhead to X-Secure than to X-Page However X-Secure required Requirement 5. What are the clues that Addon's ABC system is hely to pass the cost-bene Addsor's different software applica Addson has Advan produces Adonis in Addsan has code and times as much testing as X Page The ABC and ale Choose from any on any arber in the ingles and then contatuette = Indirect cost allocated Requirements - X stem. B stem How secure requi 1. Compute the cost allocation rate for each activity 2. Use the activity-based cost allocation rates to compute the indirect cost of each unit of X-Page and X-Secure. (Hint: Compute the total activity costs allocated to each product line and then compute the cost per unit.) 3. Addison's original single-allocation-based cost system allocated indirect costs to products at $48 per programmer hour. X-Page requires 16.000 programmer hours, while X-Secure requires 24,000 programmer hours Compute the total indirect costs allocated to X-Page and X-Secure under the original system. Then, compute the indirect cost per unit for each product 4. Compare the activity-based costs per unit to the costs from the simpler original system. How have the unit costs changed? Explain why the costs changed as they did. 5. What are the clues that Addison's ABC system is likely to pass the cost-benefit test? Print Done test? thi

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