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Please Help Lamar Company manufactures two products, Product K9 and Product L43. Product L43 is of fairly recent origin, having been developed as an attempt
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Lamar Company manufactures two products, Product K9 and Product L43. Product L43 is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product K9. Product L43 is the more complex of the two products, requiring 2.0 hours of direct labor time per unit to manufacture compared to 1.0 hour of direct labor time for Product K9. Product L43 is produced on an automated production line. Overhead currently is applied to the products on the basis of direct labor-hours. The company estimated it would incur $510,000 in manufacturing overhead costs and produce 10,000 units of Product L43 and 40,000 units of Product K9 during the current year. b. The company is considering the use of activity-based costing as an alternative to its traditional costing method for manufacturing overhead. Data relating to the company's activity cost pools for the current year are given belowStep by Step Solution
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