Answer :
- Products R5 and CP8 each are assigned $100.00 in indirect costs by a traditional costing system. An activity analysis revealed that although production requirements are identical, R5 requires 45 minutes less setup time than CP8.
- Products R5 and CP8 each are assigned $100.00 in indirect costs by a traditional costing system. An activity analysis revealed that although production requirements are identical, R5 requires 45 minutes less setup time than CP8.