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Assume a company uses a plantwide manufacturing overhead rate that is calculated using direct labor hours as the cost driver. The company manufactures both high-volume
Assume a company uses a plantwide manufacturing overhead rate that is calculated using direct labor hours as the cost driver. The company manufactures both high-volume and low-volume products that go through different processes. The company operates in a highly competitive market. The company is considering adopting activity-based costing to allocate manufacturing overhead.
How will the change to an activity-based costing system affect the product/job cost?
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