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Determine the unit cost of the two products

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Reference no: EM132566801

Assume MADAS PLC plans to adopt activity-based costing. Using the following activity center data,

Activity center            Cost Driver    OH Cost for activity     Units of Activity                         Standard Luxury 

Purchasing                   Order                 252,000                      800                                          4000

Reworking                      Order               648,000                      600                                           300

Testing                      Tests                         1,350,000             11,000                                    4000

Machining                       Hours               3,750,000                      30,000                              20,000

Total                                                          6,000,000

Question 1: Determine the unit cost of the two products using activity-based costing.

Reference no: EM132566801

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