Reference no: EM133085506
Question - Atlas Company produces two automobile antitheft devices:
The Boot: a high volume item with sales totaling 25,000 per year
The Club: a low volume item with sales totaling 5,000 per year
Each product requires 1 hour of direct labor
Total annual direct labor hours (DLH) 30,000 (25,000 + 5000)
Direct labor cost $12 per unit for each product Expected annual manufacturing overhead costs $900,000
Direct materials cost: The Boot - $40 per unit
The Club - $30 per unit
Identify the steps in the development of an activity-based costing system.
Calculate unit costs under Activity Based Costing.
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