Unformatted text preview: Cost Driver Valve A Valve B Total # of setups 20 100 120 engineering hours 1,000 6,000 7,000 lb. of material 170,000 50,000 220,000 # of inspections 150 650 800 machine hours 30,000 15,000 45,000 Calculate the unit product costs for each valve under the ABC system. Compare the unit product costs for each valve under the three overhead allocation methods in parts one and two of this problem. Which is a more accurate reflection of the true cost of each product? What are the possible outcomes of using a less accurate costing method?...
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- Spring '08
- Managerial Accounting, Cost driver