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Exercise (20) Xander Company produces televisions. One of its plants produces two versions of televisions a basic model and a premium model. At the beginning

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Exercise (20) Xander Company produces televisions. One of its plants produces two versions of televisions a basic model and a premium model. At the beginning of the year, the following data were prepared for the plant: Basic Premium Model Expected Quantity 20,000 Selling Cost Prime Costs Machine Hours 2,500 Number of requisitions Maintenance hours Number of setups Additionally, the following overhead activity costs are reported: 590 Modell 10,000 $200 S 80 500 2,000 1,500 6,000 Maintaining equipment Setting up equipment $220,000 Purchasing materials S112,000 $ 87,000 Total $419,000 Determine the unit cost and gross margin for both models under: A. Traditional Functional Method (Plantwide overhead rate is based on machine hours) B. ABC Method

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