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plantwide predetermined overhead rate is computed based on direct labor hours. The direct labor rate is $ 2 7 . 4 0 per direct labor
plantwide predetermined overhead rate is computed based on direct labor hours. The direct labor rate is $ per direct labor
hour DLH Management is considering changing to an activitybased costing system and would like to know what impact this
change might have on product cost. CH
Data concerning the expected production of each product and the expected total direct laborhours DLHs required to produce
that output appear below:
The direct materials cost per unit for each product is given below:
The company is considering adopting an activitybased costing system with the following activity cost pools, activity measures, and
expected activity:
A Calculate the single plantwide overhead rate and each of the activity overhead rates.
B Compute the unit cost for Product V if a single plantwide overhead rate is used.
C Compute the unit cost for Product B if a single plantwide overhead rate is used.
D Using the activitybased costing system, compute the unit cost for Product V
E Using the activitybased costing system, compute the unit cost for Product B
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