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A factory makes 500,000 shirts and 1,000,000 pants. Direct materials are $3,500,000 and $2,000,000 for pants and shirts, respectively. Direct Labor is $1,300,000 and $500,000
A factory makes 500,000 shirts and 1,000,000 pants. Direct materials are $3,500,000 and $2,000,000 for pants and shirts, respectively. Direct Labor is $1,300,000 and $500,000 for pants and shirts, respectively. Factory overhead is $4,200,000. The firm pays $20 per hour. The allocation base is direct labor hours. Required: derive the unit costs for a pair of pants and a shirt.
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