Question
Solve this please Under a traditional job costing system, Mark understood that his primary product included direct costs of $8.50 per unit and indirect costs
Solve this please
Under a traditional job costing system, Mark understood that his primary product included direct costs of $8.50 per unit and indirect costs of $420 per unit. The activities used to generate that product involved machine setup, material moves, and assembly. Using ABC, Mark's MOH costs allocated to his primary product are $2.50 per unit. Calculate and compare the total product cost per unit under the traditional method and the ABC method. If Mark currently sells this product for $14.80 per unit, what gross margin percentage is he generating under each method? (Round answers to 2 decimal places, e.g. 15.25K) Traditional ABC Gross margin percentage
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