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Hutchings Company manufactures and distributes two products, A and K. Overtbead coass are currently allocated using the number of units produced as the allocation base.
Hutchings Company manufactures and distributes two products, A and K. Overtbead coass are currently allocated using the number of units produced as the allocation base. The controller has changing to an activity. based costing ABC, system. She has colleeted the following information: Ksequirea A. What is the overhead cost per unit under the curent system? B. What is the total overbead allocated to each product using the current system? C. What would be the total ovethead allocated to each product under ABC costing? D. Whar would be the overhead cost per unit under ABC costing? E. Explain how traditional cost systems can lead to inaccurate product information and poor management decisions
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