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I need help with this question and it would be nice if there are explanation for step by step guide! Many thanks!! LZ Inc. makes
I need help with this question and it would be nice if there are explanation for step by step guide! Many thanks!!
LZ Inc. makes 2 products and uses an activity-based costing (ABC) costing system. Its ABC system uses 2 allocation bases which are described below. Further details on LZ Inc's overhead costs: - Total batch-level overhead costs: $40,000 - Allocation base for batch-level overhead costs: number of production batches - Each batch is made up of the same number of individual units - Total product sustaining overhead costs: $50,000 - Product sustaining overhead costs are to be divided equally between LZ Inc.'s product - Total overhead costs: $90,000 What is the value of $X i.e., Product A s overhead cost per unit? a. $6.00 b. $5.83 c. $5.00 d. $5.50 e. None of the aboveStep by Step Solution
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