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Answer the following questions using the information below: Cannady produces six products. Under their traditional cost system using one cost driver, SR 6 costs $
Answer the following questions using the information below:
Cannady produces six products. Under their traditional cost system using one cost driver, SR costs $ per unit. An analysis of the activities and their costs revealed that three cost drivers would be used under the new ABC system. The new cost of SR was determined to be $ per unit.
The total amount of indirect costs assigned to product SR using the traditional method is the total amount assigned using ABC.
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