Business, 30.09.2019 22:30 skinniestoflegends

Adelberg company has two products: a and b. the annual production and sales of product a is 1,750 units and of product b is 1,150 units. the company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. product a requires 0.4 direct labor-hours per unit and product b requires 0.7 direct labor-hours per unit. the total estimated overhead for next period is $99,400. the company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. the new activity-based costing system would have three overhead activity cost pools--activity 1, activity 2, and order size--with estimated overhead costs and expected activity as follows:

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Adelberg company has two products: a and b. the annual production and sales of product a is 1,750 u...

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