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Hi. Can you explain how to calculate each of the product's setup, quality control and maintenance costs? I have the answers. I just don't know
Hi. Can you explain how to calculate each of the product's setup, quality control and maintenance costs? I have the answers. I just don't know how these numbers were calculated. Thanks.
Aco Corporation produces three products, ProductA, Product B, and Product c The company has been using the same job order costing system for the past 10 years. They system applies indirect manufacturing costs based on the number of machine hours. The president of the company, Mr. Alico, has recentlymet withabusiness advisor who introduced him to the concept of activity based costing and has suggested that he assess his product costing system. You have been hired to complete this task. The infonmation needed to complete this task is Direct materials per unit Direct labor per unit Sales Price per unit sooo s s Monthly production (in unitsl Quality control Number of setups Number of machine hours Prepare a product cost report based on the tradtonal costing system. You must indude a table that details your overhead cost by product. Atemplate for this tableisshown below: Your product cost report should be set up as follows Gross margins (20 Prepare a product cost report based on an activity based costing system use the number of setups, number of inspections and number of machine hours provided to allocate the costs for these activities. You must include a table that detaas your overhead cost by product use the same templates as used for B) write a memo to Mr Alcoexplaining what ou have discovered during your analysis and any vou may have for him, use specrc inandalinformation from your analysis to support any Step by Step Solution
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