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i need detailed solution of these Hady Corp. is considering the adoption of an activity-based costing system distorts the product costs. This company produces and
i need detailed solution of these
Hady Corp. is considering the adoption of an activity-based costing system distorts the product costs. This company produces and sells on 52,006 costing (ABC) system because the managers suspect that their traditional costing system uses direct labor cost as the allocation base for manufacturing ly two products X23 Win and Y7SAll. Their traditional overhead cost. The production managers decided that ities are Machine setups, Special Processing, and General factory and determined the costs for each activity They identified how many setups, MIHs, and DLHs each product requires albo Product X23 Win DM 91 $82.00 The wage rate per hour is: The company collected the data for ABC as follows 30.00 323 Machine setup Special processing General factory of setups Machine hours Direct-labor hours 49,5001 2, 7 5 90,240 X23Win Y7SAI Activity Measure 40 2.0 # of setups Machine hours 6,000 A8110 4r 12 Relative to the traditional costing system, the product cost for Y7SAll A. Under the ABC system is tower by B Under the ABC system is higher by C. Under the ABC system is lower by D. Under the ABC system is higher by E. None of the above 4.20 per unit 4.20 per unit 3.70 per unt. 3.70 per unit 25.So 35 7-24 lond Step by Step Solution
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