PROBLEM Under a traditional job costing system, Marty understood the activities used to generate that...

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Accounting

PROBLEM
Under a traditional job costing system, Marty understood the activities used to generate that product involved machine setup, material moves, and assembly. The selling price and costs included in primary product are presented here.
Traditional method
Direct costs per unit
Indirect costs per unit
8.00
4.00
MOH costs allocated per unit under ABC
Selling price per unit
$,2.50
16.00
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