Cost Distortion: Continuation of Preceding Case
Refer to the product costs developed in requirement (2) of the preceding case. Prepare a table showing how Morelli Electric Motor Corporation's traditional. volume-based product-costing system distorts the production, b of the standard. deluxe. and heavy-duty models. (You may wish to refer to Exhibit 5- 10 for guidance. Because of rounding in the calculation of the product costs. there will be a small rounding error in this cost distortion analysis as well.)
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