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VRJ Company, which makes dozens of products, has a new accounting system that reports costs using a 2-stage costing system. Total overhead is projected to

VRJ Company, which makes dozens of products, has a new accounting system that reports costs using a 2-stage costing system. Total overhead is projected to be $1,000,000 for the coming year, of which 30% is attributed to Department 1 and 70% is attributed to Department 2. Both departments use direct labor dollars as their driver. Projections suggest that 40% of the total direct labor dollars incurred in the two departments are incurred in Department 1. The old accounting system used total direct labor dollars as the single driver under a simple normal absorption costing system. Using the following information about labor use, indicate which product will see its overhead allocation unaffected by the change in accounting system. Product Department 1 DL $ Department 2 DL $ VC-5 $30,000 $70,000 SWDb $40,000 $60,000 Which product will see its overhead allocation unaffected by the change in accounting system? Group of answer choices Not enough information to tell VC-5 SWDb Neither of the above

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