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(Solved): HealthTech Incorporated manufactures and sells diagnostic equipment used in the medical profession ...



HealthTech Incorporated manufactures and sells diagnostic equipment used in the medical profession. Its job costing system wab. Which of the following are the advantages of the \( A B C \) approach relative to using a single predetermined overhead ap

HealthTech Incorporated manufactures and sells diagnostic equipment used in the medical profession. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning four manufacturing overhead cost drivers (activities). Assume that the direct labor rate is \( \$ 17 \) per hour and that there were no beginning inventories. The following information was available for 2022 , based on an expected production level of 363,636 units for the year: The following production, costs, and activities occurred during the month of April: Required: a. Calculate the total manufacturing costs and the cost per unit produced and tested during the month of April for HealthTech. Note: Round "Cost per unit" to 2 decimal places. b. Which of the following are the advantages of the \( A B C \) approach relative to using a single predetermined overhead application rate based on direct labor hours. (Note: You do not have to calculate the overhead that would be applied for the month of April using this alternative method.) Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. \( \mathrm{ABC} \) does not help in decision-making. ABC systems produce more accurate financial information. \( A B C \) approach is likely to provide better information to manufacturing managers. ABC helps in decision-making. ABC systems produce more accurate product costing information.


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The Total manufacturing cost is as follows Activity Actual Activities Incurred Cost Driver Total manufacturing Cost Material Handling 285000
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