(LO 3) Adams, Inc., is a book publisher that reissues old titles. The company offers these books with either a standard machine-glued hard cover or a deluxe, hand-embossed, hand-stitched, leather cover. Adams currently allocates overhead to the books based on direct labor hours.A recent activity analysis conducted by the controller revealed the following information.align=”left”>align=”center”>align=”center”>Standard EditionDeluxe EditionUnits produced500,00010,000Direct labor hours500,00030,000Printing press hours80,0001,600Sales orders10,00010,000Required(a)Calculate the following for each product:.wileyplus.com/edugen/courses/crs7440/common/art/pixel.gif”>i.Direct labor hours per unit.wileyplus.com/edugen/courses/crs7440/common/art/pixel.gif”>ii.Printing press hours per unit.wileyplus.com/edugen/courses/crs7440/common/art/pixel.gif”>iii.Sales orders per unit(b)What do your calculations above reveal about how standard edition books and deluxe edition books consume activities?(c)If Adams, Inc., implements an activity-based costing system, what will likely happen to the cost of a standard edition book and a deluxe edition book?
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