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A lawnmower manufacturing company built 1000 ToughEnuf engines driving the post year incurring the following direct cost
Direct labor 40,000Direct material 30,000
Assume that the company
1. allocates oh on the basis of direct labor costs2. the overhead application rate is 0.25 direct labor dollar
What is the unit cost of ToughEnuf engine?
Product cost subsidization can result in:
a. poor manugerial decisionsb. inaccurate product costc. overcosting of some products and undercosting of othersd. all the abovee. none of the above
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