Compare two projects under development by the same company

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Reference no: EM13683302

Compare two projects under development by the same company. The following are a few aspects of each product's development process relevant to costs. The amount of labor hours associated directly with Product A, as a percentage of all developer hours worked (regardless of product).

The amounts for overhead to be allocated are multiplied by this value to determine the overhead to be assigned to Product A under the traditional costing method.

What is the reason for the lower per-unit cost when the batch contains more units?

Reference no: EM13683302

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