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Candy Cane Corporation is considering the use of activity-based costing. The following information is provided for the production of two product lines: Activity Set-up Machine
Candy Cane Corporation is considering the use of activity-based costing. The following information is provided for the production of two product lines: Activity Set-up Machine Maintenance Total Indirect Manufacturing Cost Production Summary: Direct Labor Hours Number of Set-ups Number of Machine Hours Cost Cost Driver $150,000 Number of Set-ups $75,000 Machine Hours $225,000 Product "A" 14,500 600 4,050 Product "B" 500 800 10,000 400 2,200 The company plans on producing the following units of each product: Product Planned Production Product A Product B Total 24,500 1,000 6,250 Candy Cane Corporation is considering the use of activity-based costing. The following information is provided for the production of two product lines: Problem \# 1 \& 2 Compute the Set-up cost per unit and the Maintenance Cost per unit (round to two decimals) Problem \#3 \& 4 Compute the Indirect Manufacturing Cost per unit of each product (round to two decimals)
Candy Cane Corporation is considering the use of activity-based costing. The following information is provided for the production of two product lines: Activity Set-up Machine Maintenance Total Indirect Manufacturing Cost Production Summary: Direct Labor Hours Number of Set-ups Number of Machine Hours Cost Cost Driver $150,000 Number of Set-ups $75,000 Machine Hours $225,000 Product "A" 14,500 600 4,050 Product "B" 500 800 10,000 400 2,200 The company plans on producing the following units of each product: Product Planned Production Product A Product B Total 24,500 1,000 6,250
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