Question
I am reviewing this information and I need help with Section IV : Alternative Costing Method 1. Calculate the allocation rates for each cost driver
I am reviewing this information and I need help with Section IV : Alternative Costing Method 1. Calculate the allocation rates for each cost driver using ABC. 2. Use the traditional costing approach to calculate the total cost and the unit cost of the stick and collapsible umbrellas. 3. Use ABC to compute the total cost for the stick and collapsible umbrellas. 4. Compute the difference between the product cost per stick and collapsible umbrellas using the unit cost that you computed with the traditional approach and the one that you computed using ABC.
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