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Calculate the budgeted total costs and cost per unit for each product line using the simple costing method. Assume total overhead is allocated based on
Calculate the budgeted total costs and cost per unit for each product line using the simple costing method. Assume total overhead is allocated based on total hours of production. And Using the ABC system, calculate the budgeted cost per unit of cost driver for each cost category. Also Using the ABC system, calculate the budgeted total costs and cost per unit for each product line Assignment Requirement: Sheets \& Homes (S&H) is a designer of high-quality curtains and bedsheets. Each design is made in small batches. Each spring, S\&H comes out with new designs for the curtains and for the bedsheets. The company uses these designs for a year and then moves on to the next trend. The products are all made on the same fabrication equipment that is expected to operate at capacity. The equipment must be switched over to a new design and set up to prepare for the production of each new batch of products. When completed, each batch of products is immediately shipped to a wholesaler. Shipping costs vary with the number of shipments. Budgeted information for the year is as follows: Table A Other budget information follows
Calculate the budgeted total costs and cost per unit for each product line using the simple
costing method. Assume total overhead is allocated based on total hours of production.
And Using the ABC system, calculate the budgeted cost per unit of cost driver for each cost
category.
Also Using the ABC system, calculate the budgeted total costs and cost per unit for each
product line
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