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Please show the calculation for each one and what is the meaning of the comment in e) The Bork Company produces two products A1 and
Please show the calculation for each one and what is the meaning of the comment in e)
The Bork Company produces two products A1 and A2. The annual quantities produced in a recent period were 1,000 X1s and 10,000 X2s. The annual quantities produced in a recent period were 1,000 Als and 10,000 A2s. X1 requires 1 direct labor hour per unit and X2 requires 4.9 direct labor hours per unit. Activity cost pools and activity measurements for ABC calculations are presented Activity Cost of Activity Activity Measure Quantity used by product A1 10 Quantity used by product A2 20 20 30 Purchasing Materials handli Engineering Total 200,000 Ordering hours 400,000 Number of times handled 100,000 Engineering work orders 700,000 15 15 $ Required: 1. Compute the unit overhead cost for A1 using the ABC method (rounded to 2 decimal places) 2. Compute the unit overhead costs for A2 using the ABC method (rounded to 2 decimal places) 3. Compute the unit overhead cost for A1 using the traditional method. 4. Compute the unit overhead cost for A2 using the traditonal method 5. Comment on the results. Be sure to show you work, clearly label cells and use exel for all computations 1. Compute the unit overhead cost for A1 using the ABC method (rounded to 2 decimal places)Step by Step Solution
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