Crimson Box produces two products. Per the companys traditional job-costing system, Basic Box and Premium...
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Crimson Box produces two products. Per the companys traditional jobcosting system, Basic Box and Premium Box cost $ and $ to produce, respectively. Recently, Crimson Box implemented a twostage allocation system, which indicated a cost of $ for the Basic Box and $ for the Premium Box. When Crimson Box implements twostage cost allocation, how are manufacturing overhead costs affected? Multiple Choice Total manufacturing overhead costs increase. Total manufacturing overhead costs decrease. Total manufacturing overhead costs are unchanged. Total manufacturing overhead costs increase, but product costs remain the same.
Crimson Box produces two products. Per the companys traditional jobcosting system, Basic Box and Premium Box cost $ and $ to produce, respectively. Recently, Crimson Box implemented a twostage allocation system, which indicated a cost of $ for the Basic Box and $ for the Premium Box. When Crimson Box implements twostage cost allocation, how are manufacturing overhead costs affected?
Multiple Choice
Total manufacturing overhead costs increase.
Total manufacturing overhead costs decrease.
Total manufacturing overhead costs are unchanged.
Total manufacturing overhead costs increase, but product costs remain the same.
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