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Unformatted text preview: allocation base. 2. Compute the reported unit cost for each product if direct labor costs are used as the allocation base. 3. Compute the reported unit cost for each product if machine hours are used as the allocation base. Demonstration Case 3 Jim is a florist who runs Bountiful Flower Shop as a sole owner. During the third week of June, he received two orders for flower bouquets that required same operations but different flower/basket combinations. Orders 471 and 472 were for a wedding hall and a business conference, respectively. The following information was available. Order 471 Order 472 Total Number of bouquets 120 90 210 Flowers $1,800 $1,080 $2,880 Baskets 600 360 960 Supplies 240 90 330 Total costs of materials $2,640 $1,530 $4,170 Direct labor in operation $630 Overhead in operation 1,155 Total costs in operation $1,785 Required: Determine the total cost and unit cost for Orders 471 and 472....
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- Spring '08
- Cost Accounting