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Note: please provide relevant solution Question 3: (9 Marks) Armidale, Inc., manufactures small parts and uses an activity-based costing (ABC) system. The company's books show
Note: please provide relevant solution
Question 3: (9 Marks) Armidale, Inc., manufactures small parts and uses an activity-based costing (ABC) system. The company's books show the following information: Activity Materials handling Assembling Packaging Estimated Allocation Base Cost Allocation Rate Indirect Activity Costs $50,000 Material moves $1.50/move $200,000 Direct labor hours $6.00/hour $75,000 Number of finished units $0.60/unit Three different parts (Part A, B and C) were produced in October 2020, and the following information related to each of these Parts is available: Part Materials Costs Material Moves Labor Hours A B Number Produced 2,000 3.000 4,000 $ 2,000 $6,000 $10,000 |1,000 1,500 2,000 150 500 |1,200 Required: Compute the total manufacturing costs and the unit cost for each of the three parts for the month of October 2020Step by Step Solution
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