Hadley,Inc

question 80

Multiple Choice

Hadley,Inc.manufactures a product that uses $15 in direct materials and $5 in direct labor per unit.Under the traditional costing system Hadley uses,manufacturing overhead applied to each unit is $12.However,Hadley is considering switching to an ABC system.Under the ABC system,the total activity cost would be $25.What is the total manufacturing cost per unit for Hadley under the ABC system?

• A)$20
• B)$25
• C)$32
• D)$45

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Definitions:

Economic

Related to the production, consumption, and transfer of wealth and resources within a society.

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A structured approach to evaluate and guide ethical decisions in a professional setting, often incorporating moral principles and company values.

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A collaborative idea generation process aimed at solving a problem or generating creative solutions.

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The act of collecting data, facts, and insights necessary to make informed decisions or to understand a subject more deeply.