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Mikoo, Inc. manufactures a product that uses $22 in direct materials and $13 in direct labor per unit. Under the traditional costing system Mikoo uses,
Mikoo, Inc. manufactures a product that uses $22 in direct materials and $13 in direct labor per unit. Under the traditional costing system Mikoo uses, manufacturing overhead applied to each unit is $22. Mikoo is considering switching to an ABC system, however. Under the ABC system, the total activity cost would be $27. What is the total manufacturing cost per unit for Mikoo under the ABC system?
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