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XYZ Co. makes two products namely Product-1 and Product-2 using the same equipment. One production process of each product is scheduled approximately every week.
XYZ Co. makes two products namely Product-1 and Product-2 using the same equipment. One production process of each product is scheduled approximately every week. XYZ Co. management intends to implement the ABC financing system, if information regarding the latest year operations of XYZ Company is as follows Description Unit Produced Direct Material Cost Per-unit Direct Labor Hour per Unit Cost Perhour Machine Hours Hours/unit Overhead Man Hour Related Machine Hour Related Please help to calculate these costs using Activity Based Costing (ABC): a. Calculate total cost and unit cost for product-1. b. Calculate total cost and unit cost for product-2 Product-1 xx.000 1x.x00 2 60.000 0,6 Product-2 12.000 15.000 1 50.000 0,9 Total 2.xx0.000.000 1.xx0.000.000
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