Essay
Altima Company uses an overhead costing system based on direct labor hours for its two products X and Y.The company is considering adopting an activity-based costing system, and collects the following information for the month of October. Required:
(1) Compute the unit manufacturing cost of each product under a volume-based costing system based on direct labor hours.
(2) Compute the unit manufacturing cost of each product under the activity-based costing system.
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