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Exercise 17-12 Using ABC for strategic decisions LOP1,P3 Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicoted with a
Exercise 17-12 Using ABC for strategic decisions LOP1,P3 Consider the following data for two products of Gitano Manufacturing. (Loss amounts should be indicoted with a minus sign. Round your intermediate calculations and "OH rate and cost per unit" answers to 2 decimal places.) Required: 3. Consider the following additional information about these two product fines. If ABC is used for assigning overhead costs to products, what is the cost per unit for Product A and for Product B ? \begin{tabular}{|l|c|l|l|l|} \hline & \multicolumn{3}{|c|}{ Product A } & \multicolumn{2}{|c|}{ Product B } \\ \hline Number of setups required for production & 3 & setups & 14 & setups \\ \hline Number of parts required & 12 & part/unit & part/unit & hours \\ \hline Inspection hours required & 54 & hours & & 250 \\ \hline \end{tabular} Machine setup \begin{tabular}{|l|l|l|} \hline & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Materials handling \\ \hline \end{tabular} 4.2 Based on your results in part 4 , should the profit or loss per unit for each product influence company strategy? Yes No
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