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Help me how to calculate unit costs for each product using both current costing system and ABC system! Upriver Parts manufactures two products, V-1 and
Help me how to calculate unit costs for each product using both current costing system and ABC system!
Upriver Parts manufactures two products, V-1 and V-2, at its River Plant Selected data for an aver age month for the two products follow. V-1 10,000 $ 2 V-2 1,000 $ 4 Units produced..... Direct materials cost per unit .......... Machine-hours per unit Production runs per month....... 80 40 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow. Machine depreciation. Setup labor.... Material handling...... Total... $36,000 18,000 14,400 $68,400 a. Compute the unit costs for the two products, V-1 and V-2, using the current costing system at Upriver (using machine hours as the allocation basis). Compute the unit costs for the two products, V-1 and V-2, using the proposed ABC system at Upriver. bStep by Step Solution
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