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12 Em & Em Co believes its total production costs act as a mixed cost and they would like to separate out the variable and
12 Em & Em Co believes its total production costs act as a mixed cost and they would like to separate out the variable and fixed portions for budgeting purposes. Below are the last six months of monthly Production Costs and Sales (whicha En & Em believes is the most appropriate activity that explains the cost behaviot). Total Production Month Sales Costs $5,400,00 January 0 $2,800,000 37,600,00 February 0 $4,400,000 $7,800,00 Alarca 0 34,200,000 $6,700,00 0 $3,300,000 34,700,00 May 0 $2,200,000 34,100,00 0 $2,400,000 What is the relevant range between which Ew & Em can estimate Total Production Costs? 2. Production costs between $4,400,000 and $2,200,000 b. Sales between $7,500,000 and $4,100,000 c. Production costs between $4,200,000 and $2.400,000 d. Sales between $7,500,000 and $4,700,000 April 13. Dunn Corporation has provided the following averzge production and cost data for monthis production. The company produces a single product Production volume 4,000 units Direct materials $39.70 per unit Direct labor $22.60 per unit Manufactaring overbezd $204,000+ $19.50x x = suits products) The best estimate of the total variable manufacturing cost per unit is: $19.50 b. $112.30 c. $131.80 d. $182.80 e. None of the above. 14. Which factor can contribute to underarelying overhead using a Predetermined Overhead Rate? 2. Fixed Overhead costs incurred are less than brudgeted. b. Total production is less than budgeted c. Total production is more than budgeted d. None of the above
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