(10 points). Following are some production data of Forillon Inc. The company uses a traditional...
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(10 points). Following are some production data of Forillon Inc. The company uses a traditional company-wide single overhead rate based on direct labor costs. Analyze the data and answer the following questions: Product Product 1 Product 2 Product 3 Product 4 Per Unit Production Data Direct Labor Machine Costs Hours 100 9 300 7 200 6 IT Support hours 20 27 16 12 300 3 Product 5 100 5 5 a. Which product is likely to be undercosted? Explain you Answer. b. Which product is likely to be overcosted? Explain you Answer. C. Which product seems to be correctly costed? Explain you Answer. d. For which products it is not clear whether they are overcosted or undercosted? Explain you
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