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answer all of this question in detail Michael is incredibly busy tying up loose ends at the end of the calendar year. His hammock stand
answer all of this question in detail
Michael is incredibly busy tying up loose ends at the end of the calendar year. His hammock stand business has been doing weil but not quite as well as he had hoped. His production level was down slightly this year, despite implementing a new quality initiative as well as a profit-sharing incentive for all employees. He is toying with the idea of adjusting the production expectations for net year, but he needs to run some numbers before presenting it to the rest of the team. Below are budpeted costs, as well as budgeted capacity amounts for three possible denominator levels. Michael also included a likely scenario for actial production and sales, with a selling price of $70 per unit. Assume the inventory cost per unit for beginning FG Inventory is the same as the current-period inventory cost per unit. Assume this holds true for each different denominator level. Further, assume there are no price or efficiency variances this period. Any foed-MOH volume variance is closed out directly to COGS: Calculate the cost per unit that would be capitalized under each possible denominator level, breaking out the variable and foed components and listing the total cost per unit. (Round anwers to 2 decimal ploces es. 15.25) Step by Step Solution
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