{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Comparing Unit Costs - understated $65 per unit($137 $72...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
COMPARING UNIT COSTS A comparison of unit manufacturing costs under traditional costing and ABC shows the following  significant differences.  Illustration 17-11    Comparison of unit product costs The comparison shows that unit costs under traditional costing are significantly distorted. The cost of  producing The Boot is overstated $13 per unit ($82 - $69), and the cost of producing The Club is 
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: understated $65 per unit ($137 - $72). These differences are attributable entirely to how Atlas Company assigns manufacturing overhead. A likely consequence of the differences in assigning overhead is that Atlas has been overpricing The Boot and possibly losing market share to competitors. It also has been sacrificing profitability by underpricing The Club....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online