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Alpha Manufacturer Ltd currently produces 3038 tyres per month. The following per unit data for 3038 tyres apply for sales to regular customers: Direct materials
Alpha Manufacturer Ltd currently produces 3038 tyres per month. The following per unit data for 3038 tyres apply for sales to regular customers:
Direct materials $44
Direct manufacturing labour 13
Variable manufacturing overhead 15
Fixed manufacturing overhead 23
The plant has the capacity to manufacture 5065 tyres and is considering expanding production to 4016 tyres. Calculate Alpha's total cost of producing 4016 tyres.
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