Question
5) X Company manufactures a single product, Product A, and budgets total manufacturing costs each month. The accountant provides the following information about its manufacturing
5)
X Company manufactures a single product, Product A, and budgets total manufacturing costs each month. The accountant provides the following information about its manufacturing process: Direct material quantity 2.6 pounds per unit of Product A Direct material price $22.00 per pound Direct labor time 1.7 hours per unit of Product A Direct labor wage rate $15.90 per hour The budgeted monthly overhead cost function is $3,600+$2.20X, where X is the number of units produced. If X Company expects to produce 940 units of Product A in December, what are budgeted total manufacturing costs for December?
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