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Required: Choose the correct option and justify your selection by calculation. (6 points) A company makes two products using the same type of materials and
Required: Choose the correct option and justify your selection by calculation. (6 points) A company makes two products using the same type of materials and skilled workers. The following information is available: Product A Product B Budgeted volume (units) 1.000 2,000 Material per unit ($) 10 20 Labour per unit ($) 5 20 Fixed costs relating to material handling amount to $100,090. The cost driver for these costs is the volume of material purchased. General fixed costs, absorbed on the basis of labour hours, amount to $180,000. Using activity-based costing, what is the total fixed overhead amount to be absorbed into each unit of product B (to the nearest whole $)? A $113 B $120 $40 D $105
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