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Believing that its traditional cost system may be providing misleading information, an organization is considering an activity-based costing (ABC) approach It now employs a full-cost

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Believing that its traditional cost system may be providing misleading information, an organization is considering an activity-based costing (ABC) approach It now employs a full-cost system and has been applying its manufacturing overhead on the basis of machine hours. The organization plans on using 50,000 direct labor hours and 30,000 machine hours in the coming year. The following data show the manufacturing overhead that is budgeted If the organization uses the traditional full-cost system, compute the cost per unit of this product. Compute the cost per unit if activity- based costing is used

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