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Telecom Company would like to use activity-based costing to allocate overhead, rather than using one plant-wide rate. The company produced 6,000 cell phones (sells for
Telecom Company would like to use activity-based costing to allocate overhead, rather than using one plant-wide rate. The company produced 6,000 cell phones (sells for $150) and 2,000 smart phones (sells for $350). The following estimates are for the activities and related cost drivers identified as having the greatest impact on overhead costs: Required: a. What is the overhead cost per unit, for each type of phone? b. Why would the company choose to use activity based costing over a predetermined OH rate? c. What could the company use this information for
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