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Assume another product line is also being considered bookshelves. Only use this information for...

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Accounting

Assume another product line is also being considered bookshelves. Only use this information for the questions listed directly below. Higher skilled workers would be required which will result in paying them $15 per hour. Additional MOH costs for the year will be $150,000. These costs will be in addition to the costs already being incurred. These costs are due to the additional product line and also related to the current product lines for additional production abilities. The two lines will share all MOH costs. 1. Should the company consider using ABC? Discuss why or why not? Areas to include in the discussion but not limited to the following: impact on product cost, implications of not using the right allocation and its impact on price if any, etc. 2. How specifically would ABC help allocate MOH costs?

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