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Traditionally, overhead has been assigned based on direct labor hours or machine hours. What effect does this have on the cost of a high-volume item?
Traditionally, overhead has been assigned based on direct labor hours or machine hours. What effect does this have on the cost of a high-volume item?
a. over-costs the product
a. over-costs the product
b. under-costs the product
c. has no effect the product cost
d. cost per unit is unaffected by product volume
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Managerial Accounting
Authors: Kurt Heisinger, Joe Ben Hoyle
2nd edition
1453375723, 1453375724, 978-1453375716
