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Mail Co produces two kinds of envelopes called the Basic and the Deluxe. The Deluxe uses more expensive materials than the Basic. Mail Co currently
Mail Co produces two kinds of envelopes called the Basic and the Deluxe. The Deluxe uses more expensive materials than the Basic. Mail Co currently uses traditional absorption costing to allocate overheads to its products using production units as the basis for apportionment. Information for the two products is as follows: Selling price is calculated using a percentage mark-up on cost. Mail Co is now considering the introduction of an activity-hhised costing (ABC) system. Budgeted annual overheads are as follows: What is the cost per unit attributed to the Basic for machine set-ups if activity-based costing (ABC) is introduced (to the nearest cent)
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