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Consumption Ratios Larsen, Inc.r produces two types of electronic parts and has provided the following data: There are four activities: machining, setting up , testing,
Consumption Ratios
Larsen, Inc.r produces two types of electronic parts and has provided the following data:
There are four activities: machining, setting up testing, and purchasing.
Required:
Calculate the activity consumption ratios for each product. Round your answers to two decimal places.
Consumption Ratios
Calculate the consumption ratios for the plantwide rate direct labor hours Round your answers to two decimal places.
Consumption Ratios
Overhead Activity
Part X
Part YK
Plantwide:
Manufacturing
Which product is undercosted?
If the machine hours were used for the plantwide rate, would this remove the cost distortion of a plantwide rate?
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