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Blue Inc. always stayed abreast of production methods, technology, and business insight. However, it recently realized it had ignored an important business consideration: the cost
Blue Inc. always stayed abreast of production methods, technology, and business insight. However, it recently realized it had ignored an important business consideration: the cost of MOH. The company had not considered more precise MOH cost allocation methods until now. To right this, managers examined the accounting system and interviewed production managers to understand costs. The following four key activity areas emerged as primary sources for all MOH, and related cost driver information is also included here. *Includes rent, depreciation, and utilities Additional information for one of Blue's products, the wall mirror, is provided as follows. Calculate the allocation of MOH to the wall mirror and its total product cost per unit. (Round cost per unit to 2 decimal places, e.g. 15.25.) Total allocation of MOH$ Total product cost per unit $ /unit
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