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A company reported the following cost information for the last fiscal year when it produced 100,000 units. Direct labor $200,000 Direct materials 100,000 Manufacturing overhead
A company reported the following cost information for the last fiscal year when it produced 100,000 units. Direct labor $200,000 Direct materials 100,000 Manufacturing overhead 200,000 Selling and administrative expenses 150,000 All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expenses. Using flexible budgeting, what are the total costs associated with producing and selling 110,000 units?
A. $715,000
B. $450,000
C. $650,000
D. $695,000
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