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Required

a. Determine the unit cost for each job using a traditional plantwide overhead rate based on machine

hours.

b. Determine the unit cost for each job using ABC. (Round answers to two decimal places.)

c. As the manager of Ridgeland, is there additional information that you would want to help you evalu-

ate the pricing and profitability of Jobs 201 and 202?

d. Assuming the company has been using the method required in part a, how should management react

to the findings in part b?

Fig: 1