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Exercise 17-12 Using ABC for strategic decisions LO P1, P3 Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be
Exercise 17-12 Using ABC for strategic decisions LO P1, P3 Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicated with a minus sign. Rous your intermediate calculations and "OH rate and cost per unit" answers to 2 decimal places.) Number of units produced Direct labor cost ( $25 per DLH) Direct materials cost Activity Machine setup Materials handling Quality control inspections Product A 11,000 units 0.12 DLH per unit $ 1.80 per unit Overhead costs $ 11,744 60,000 78,400 $150,144 Product B 1,300 units 0.24 DLH per unit $ 2.90 per unit Required: 1. Using direct labor hours as the basis for assigning overhead costs, determine the total production cost per unit for each product line. Overhead costs $ 150.144 Direct labor hours Overhead Assigned Product A Product B 0 per direct labor hour Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unis Product A Product B Prev 6 of 8 Score answer >
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