Question
A company manufacturing bicycles now produces 4000 hoovers/month, and the following unit costs (euros/hoover) have been calculated for that level of activity the hoover company
A company manufacturing bicycles now produces 4000 hoovers/month, and the following unit costs (euros/hoover) have been calculated for that level of activity the hoover company utilizes.
Direct materials: 53 Direct: 10 ((NOTE!!!!! I am not exactly sure what "direct" this is, as the task only writes direct, I would assume direct costs ) Variable manufacturing overhead costs: 12 Fixed manufacturing overhead: 14 Total manufacturing costs: 89
The company has the capacity to produce 6000 hoovers/month. If 5000 hoovers/month were produced, what would be the cost of manufacturing per hoover?
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