PROBLEM #3 Sanplex Company produces a variety of electronic products. One of its plants produces...
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PROBLEM #3 Sanplex Company produces a variety of electronic products. One of its plants produces two laser printers, the Super and the Regular. At the beginning of the year, the following data were prepared for these products. Item Units produced Sales price per unit Direct materials cost per unit S30.00$25.00 Direct labor cost per unit$130.00 Factory overhead costs per unit $100.00 Super Printer Regular Printer 50,000 400,000 $295.00 | $475.00- $85.00 $100.,00 Factory overhead costs per unit were determined using a plant-wide rate based on direct labor hours. The marketing manager is impressed with the per unit profitability of the Super Printer, and suggested the company should place more emphasis on producing and selling this product. The plant manager disagreed, arguing the factory overhead costs per unit for the Super Printer are understated. To investigate the plant manager's claims, the company hired a consulting firm to gather data to implement activity-based costing. The following data were obtained
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