Question
Coronado Industries produces 5000 units of part A12E. The following costs were incurred for that level of production: Direct materials $ 50000 Direct labor 155000
Coronado Industries produces 5000 units of part A12E. The following costs were incurred for that level of production:
| Direct materials | $ 50000 |
| Direct labor | 155000 |
| Variable overhead | 70000 |
| Fixed overhead | 175000 |
If Coronado buys the part from an outside supplier, $40000 of the fixed overhead is avoidable. What is the relevant cost per unit of part A12E?
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Accounting Information Systems The Crossroads of Accounting & IT
Authors: Donna Kay, Ali Ovlia
2nd Edition
132991322, 978-0132991322
