Respuesta :
The impact of changing the costing system is raising the per unit overhead cost of product L, compared to the current costing system's predetermined overhead per unit ($32). Under the current costing system, both the products are having same predetermined overhead rate of $32 as the both products are taking same amount of time to manufacture.
An expense related to the creation of a good or service is the overhead rate. Overhead expenses include things like the price of the corporate office that aren't directly related to production.
The cost a business allocates to production to obtain a more comprehensive picture of product and service costs is known as the overhead rate, also known as the standard overhead rate. Indirect costs are multiplied by a specific measurement, added to determine the overhead rate.
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