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. The company's products and other operating statistics follow. a. Calculate the unit cost for each product using the appropriate cost drivers for each product.
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The company's products and other operating statistics follow. a. Calculate the unit cost for each product using the appropriate cost drivers for each product. Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36 ). b. Before it installed an ABC system, Chester used a traditional costing system that allocated factory overhead to products using direct labor hours. The firm operates in a competitive market and sets product prices at cost plus a 25 percent markup. Calculate the unit cost for each product based on traditional costing. Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36 ). c. Determine selling prices based on unit costs for traditional costing, using the rounded rates from part (b). Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36 ). d. Determine selling prices based on unit costs for ABC, using the rounded rates from part (a). Note: Round your final answers to two decimal places (i.e. round $4.355 to $4.36 )Step by Step Solution
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