Question
Use the following information to answer this and the following few questions: Sahara Industrial has recently adopted an activity-based costing (ABC) system. Sahara switched from
Use the following information to answer this and the following few questions: Sahara Industrial has recently adopted an activity-based costing (ABC) system. Sahara switched from its previous method of allocating overhead costs based on a single predetermined overhead rate using direct labor hours. The direct labor hour cost per unit was $18. Assume there were no beginning inventories. Sahara gathered the following information to allow it to allocate costs using the new ABC system: In July, the following additional information was also collected: Using the ABC method, determine the total manufacturing cost for July.
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