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Chapter 17 Activity-Based Costing and Analysis 793 uired ng direct labor hours as the basis for assigning overhead costs, determine the total production cost per
Chapter 17 Activity-Based Costing and Analysis 793 uired ng direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. If the market price for Product A is $20 and the market price for Product B is $60, determine the or loss per unit for each product. Comment on the results. Consider the following additional information about these two product lines. If ABC is used for as- signing overhead costs to products, what is the cost per unit for Product A and for Product B? t Check (2) Product B $26.10 per unit proft Product B 12 setups 1 partlunit3 parts/unit Product A 10 setups Number of setups required for production. Number of parts required... . 210 hours 40 hours Determine the profit or loss per unit for each product. Should this information influence company trategy? Explain. 4) Product B $(24.60) per unit loss ts and the cost driver for the remaining Activity-based costing and t allocated overhead cost allocation Co 's internal records of its factory with two production departments. Exercise 17.11 Chapter 17 Activity-Based Costing and Analysis 793 uired ng direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. If the market price for Product A is $20 and the market price for Product B is $60, determine the or loss per unit for each product. Comment on the results. Consider the following additional information about these two product lines. If ABC is used for as- signing overhead costs to products, what is the cost per unit for Product A and for Product B? t Check (2) Product B $26.10 per unit proft Product B 12 setups 1 partlunit3 parts/unit Product A 10 setups Number of setups required for production. Number of parts required... . 210 hours 40 hours Determine the profit or loss per unit for each product. Should this information influence company trategy? Explain. 4) Product B $(24.60) per unit loss ts and the cost driver for the remaining Activity-based costing and t allocated overhead cost allocation Co 's internal records of its factory with two production departments. Exercise 17.11
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