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Ehsan Electronics Company manufactures two products. X21 and Y37. at its manufacturing plant in Duluth, Minnesota. For many years, the company has used a simple
Ehsan Electronics Company manufactures two products. X21 and Y37. at its manufacturing plant in Duluth, Minnesota. For many years, the company has used a simple plant-wide manufacturing overhead cost rate based on direct labor hours. A new plant accountant suggested that the company may be able to assign overhead costs to products more accurately by using an activity-based costing system that relies on a separate rate for each manufacturing activity that causes overhead costs. After studying the plant's manufacturing activities and costs, the plant accountant has collected the following data for 2015: The accountant has also determined that actual manufacturing support costs incurred during 2015 were as follows: The direct materials cost for product X21 is $120 per unit, while for product Y37 it is $140 per unit. Required: Determine the unit cost of each product using activity-based costing
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