Use the following information to complete Exercises below:
4H Friends Co. (4HF) uses activity-based costing in their manufacturing process. The company produces two products, ABC and XYZ. 4HF has provided their costing department the following information from this year's budget relating to the production of these two products:
The following costs are expected to be incurred throughout the year, and are related to the cost drivers being measured:
NOTE: Round all per-unit costs to nearest cent.
-If the company were to use a plant-wide rate based on machine hours, which product would be overpriced? (Assume that activity-based costing is more accurate).

Question

Use the following information to complete Exercises below: 
4H Friends Co. (4HF) uses activity-based costing in their manufacturing process. The company produces two products, ABC and XYZ. 4HF has provided their costing department the following information from this year's budget relating to the production of these two products:
  The following costs are expected to be incurred throughout the year, and are related to the cost drivers being measured: 
  NOTE: Round all per-unit costs to nearest cent.
-If the company were to use a plant-wide rate based on machine hours, which product would be overpriced? (Assume that activity-based costing is more accurate).

Quizplus · Accepted Answer

The Answer of Use the following information to complete Exercises below: 
4H Friends Co. (4HF) uses activity-based costing in their manufacturing process. The company produces two products, ABC and XYZ. 4HF has provided their costing department the following information from this year's budget relating to the production of these two products:
  The following costs are expected to be incurred throughout the year, and are related to the cost drivers being measured: 
  NOTE: Round all per-unit costs to nearest cent.
-If the company were to use a plant-wide rate based on machine hours, which product would be overpriced? (Assume that activity-based costing is more accurate).

Use the Following Information to Complete Exercises Below