Calculate unit cost for toughenuf engines

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Reference no: EM1348672

A lawnmower manufacturing company built 1000 ToughEnuf engines driving the post year incurring the following direct cost

Direct labor 40,000
Direct material 30,000

Assume that the company

1. allocates oh on the basis of direct labor costs
2. 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 decisions
b. inaccurate product cost
c. overcosting of some products and undercosting of others
d. all the above
e. none of the above

Reference no: EM1348672

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