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I believe my answer to part A is correct but I'm confused as to how to do part B. Any help would be greatly appreciated.
I believe my answer to part A is correct but I'm confused as to how to do part B. Any help would be greatly appreciated. Thank you in advance.
Required information Upriver Parts manufactures two products, V-1 and V-2, at its River Plant. Selected data for an average month for the two products follow. v-1 10,000 $ 2 v-2 1,000 $ Units produced Direct materials cost per unit Machine hours per unit Production runs per month 2 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 $42,000 20,400 14,880 $77,280 Required: 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). (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Compute the unit costs for the two products V-1 and V-2 using the proposed ABC system at Upriver. (Do not round intermediate calculations. Round your answers to 2 decimal places.) - V1 $ Unit Cost V-2 8.44 $ 14.88 a. b. Using current costing system Using proposed ABC systemStep by Step Solution
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