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Q1) Carroll Company manufactures two products, Product DRT and Product CRT. Company evaluated it would incur $130,890 in manufacturing overhead costs in present period.  Overhead presently is allocated to products on basis of direct labour hours.  Data concerning current period's operations appear below:

  Product DRT Product CRT
Estimated volume 400 units 1,200 units
Direct labour hours per unit  0.70 hour 1.20 hours
Direct materials cost per unit $10.70 $16.70
Direct labour cost per unit $11.20 $19.20

Were your results typical pattern for the activity-based costing analysis? Describe in detail.

Accounting Basics, Accounting

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