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(Solved): Ramsey Company produces two types of battery-operated toy soldiers: infantry and special forces. Bo ...
Ramsey Company produces two types of battery-operated toy soldiers: infantry and special forces. Both products pass through two production departments. infantry's production is much more labour-intensive than that of special forces. special forces is also the more popular of the two types of battery. The following data have been gathered for the two products:
Required: 1. Compute the overhead cost per unit for each product by using a plant-wide rate based on machine hours. (Note: Round to two decimal places.) [3 marks] 2. Compute the overhead cost per unit for each product by using ABC. (Note: Round rates and unit overhead cost to two decimal places.) [5 marks] 3. Comment on the difference between the assignment in requirement 1 and the activitybased assignment. [2 mark]