XYZ Ltd. incurred $100,000 in indirect labor costs, $80,000 in indirect materials costs, and $50,000 in other
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Question:
XYZ Ltd. incurred $100,000 in indirect labor costs, $80,000 in indirect materials costs, and $50,000 in other manufacturing overhead costs during a particular month. If the company produced 25,000 units during that month, perform a comprehensive evaluation of the total manufacturing overhead cost per unit. Consider both direct and indirect expenses and examine the allocation methods used for assigning overhead costs to products. Assess the accuracy and fairness of the allocation methods and propose improvements for more precise cost measurement and control.
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