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Kunkel Company makes two products and uses a conventional costing system In which a single plantwide predetermined overhead rate is computed based on direct labor-hours.
Kunkel Company makes two products and uses a conventional costing system In which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the upcoming year follow: These products are customized to some degree for specific customers. Requlred: 1. The company's manufacturing overhead costs for the year are expected to be $640,000. Using the company's conventional costing system, compute the unlt product costs for the two products. 2. Management is considering an actlvity-based costing system In which half of the overhead would continue to be allocated on the basis of direct labor-hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year: Compute the unit product costs for the two products using the proposed ABC system. (For all requirements, do not round Intermedlate calculatlons. Round your final answers to 2 decimal places.) Answer is complete but not entirely correct
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