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00 667 6667 333 8167 012332 75000

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Unformatted text preview: 3 $ 81.67 "#$%&'()*+,-.//%01%2332 $75,000 ÷ 15,000 =! $5.00 per unit $75,000 Activity Based Costing 8 4 4 Product Profitability: Activity-Based Systems Unit selling price selling price Unit production costs: Direct material and labor Factory overhead Cost per unit Product margin Special $ 395 Regular $ 195 195 $ $ $ $ $ $ $ $ 200 155 355 40 80 82 162 33 Total Profit Special: $200,000; Regular: $495,000 Overhead shifts from “regular” to “special”. ! "#$%&'()*+,-.//%01%2332 It changes the product profitability. special product consume a lot none volume driven cost 8 4 4 What Do We Learn from the Case? ! "#$%&'()*+,-.//%01%2332 Business Environment is Changing Labor Intensive Process Automated Process • Overhead costs are relatively small relatively small. • Overhead costs are relatively large relatively large. • Overhead allocations may be inaccurate, but the amounts are relatively i...
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This document was uploaded on 03/13/2014 for the course RSM RSM222 at University of Toronto- Toronto.

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