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A company that produces two products has the following information
PRODUCT N PRODUCT O
Direct material Direct material
N$ 50 N$ 40
Direct labor @ N$ 10 per hour Direct labor @ N$ 10 per hour
N$ 30 N$ 40
Production units Production units
10000 15000
Information relating to overheads:
Cost pool driver Total cost (N$)
Receiving acquisitions 300000.00
Machine set ups 500000 ( number of set ups)
Further information
Product N Product O
Number of purchase requisitions Number of Purchase requisitions 1800 1200
Number of set ups Number of set ups 240 260
REQUIRED
Question 1: What is the product cost per unit for Product N using activity-based costing?
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