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Signature 1. Cabalo Company manufactures two products, Product C and Product D. The company estimated it would incur $395,600 in manufacturing overhead costs during the
Signature 1. Cabalo Company manufactures two products, Product C and Product D. The company estimated it would incur $395,600 in manufacturing overhead costs during the current period. Data conceming the current period's operations appear below: (5 pts.) Estimated volume Direct labor hours per unit Direct materials cost per unit Direct labor cost per unit Product C 4000 units 70 hour $10.70 $11.20 Product D 12,000 units 1.2 hours $16.70 $19.20 The company is using an activity-based costing system to compute unit product costs instead of its traditional system based on direct labor hours. The activity-based costing system would use three activity centers. Data relating to these activities for the current period are given below: Estimated Expected Activity Product CProductID 1,300 1,000 850 2,800 2300 setups Machine setups Purchase orders $80,500 108,700 2,174 P.O. 1,324 14,400 General factory 206400 17.200 DLH $395,600 Determine the unit product cost of each product for the current period using the activity-based costing approach. Prodact cost using acitbasdcotng Eredeact C Product D
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