=+ direct materials and direct rework labour (variable costs)$3 per unit fixed costs of equipment, rent
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=+◗ direct materials and direct rework labour (variable costs)—$3 per unit
◗ fixed costs of equipment, rent and overhead allocation—$4 per unit.
Lomax Ltd’s process designers have developed a modification that would maintain the speed of the process and ensure 100% quality and no rework. The new process would cost $315000 per year. The following additional information is available:
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan
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