Traditional Product Costing versus Activity-Based Costing Ridgeland Inc. makes backpacks for large sporting goods...
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Accounting
Traditional Product Costing versus ActivityBased Costing
Ridgeland Inc. makes backpacks for large sporting goods chains that are sold under the customers' store brand names. The Accounting Department has identified
the following overhead costs and cost drivers for next year:
The following data are for two recently completed jobs:
a Determine the unit cost for each job using a traditional plantwide overhead rate based on machine hours.
Round cost per unit answers to two decimal places when applicable.
b Determine the unit cost for each job using ABC. Round cost per unit answers to two decimal places when applicable.
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