Unformatted text preview: (a) Apply activity-based costing and determine the amount assigned to a concrete seahorse. (b) For GAAP purposes, Sand Castle applies traditional costing methods, and allocates overhead at $50 per machine hour. How much cost would be assigned to the 2,500 seahorses? What is the per unit cost of a seahorse under the traditional approach? What might explain the higher cost assignment, and how could this influence business decision making?...
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- Spring '11