Help Please I don’t know how to solve this problem !!
This question is about Activity Based Costing.
The Peggy Playground produces children’s swing-sets.
a) How do I Apply activity-bases costing and determine the amount assigned to a swing-set?
b) and For GAAP purposes, Peggy Playground applies traditional costing methods, and allocates overhead at $40 per machine hour. How much cost would be assigned to the 4,500 swing-sets? What is the per unit cost of a swing-set under the traditional approach? What might explain the higher cost assignment, and how could this influence business decision making?
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