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Please solve in detail the complete questios (a,b,c & d) Star Corporation in applying masufacterint overhead to its product on the basis of direst labor
Please solve in detail the complete questios (a,b,c & d)
Star Corporation in applying masufacterint overhead to its product on the basis of direst labor conts. The. company han two produth, Stanifard atd Delaxe. The company rocently start prodscing the Deluxe product and wat expecting a bigher increwe, Lastyen't manufactirite overtiead was 5880,000 , based on produetion of 320,000 units of Standiard asd 120, 000 vanits of Deluce. Sellieg pricts were 53.60 per Standard and 55.k0 per Deluxe. Dirtst materials and threst labor cotta were as followw: The company it experiescing a decliee is grefit and Sare Word, the new eempany'o contrelfer, is conaidering the ase of Activity.Based Costing (ABC) for the company to analyze the company profitability. She identifisd three major activities related to overbrad as followt: REOUIRED: (a) Compote the coct per inif for Standatd asd Dahixs, assaming the eite of direct labor conta as an application rate. (b) Compute tho cost per unit for \$iandard and Deirese, aspuming the wie of ABC. (c) Compute the profit margin per unit for cach product. (d) How migbt the rosals espilain why the profits-did oot increare as managsiaent expected Step by Step Solution
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