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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.
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