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25. What is the total cost to The Company, excluding fixed overhead, for the production level of 5,500 units? 26. What is the total cost
25. What is the total cost to The Company, excluding fixed overhead, for the production level of 5,500 units?
26. What is the total cost per unit for the production level of 5,500 units?
27. What is the total cost to The Company, excluding fixed overhead, for the production level of 6,000 units?
28. What is the total cost per unit for the production level of 6,000 units?
Cujo Inc. ("The Company") is a manufacturer of hockey nets in Ottawa. This year is a very important year for the company, as they are considering selling the company for a high price, and really need a strong year to make that possible. Management wants to do some scenario planning and see what the financial results would look like under different production levels. The Company has budgeted these costs for one hockey net (1 Unit) Variable overhead 5.75 hours of direct labour @ $8.00/hour Materials 20 feet of netting @ $1.00/foot Labour 5.75 hours of direct labour @ $3.00/hour Fixed overhead for The Company will be $32,000 this year. Required: Prepare a flexible budget, for the year, for the production of 5,500 and 6,000 units. Using this flexible budget, answer the following questionsStep by Step Solution
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