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Assume that the direct cost per smartphone is: Direct material $60 Direct labour $35 Assume that the factory where the phones are made is also
Assume that the direct cost per smartphone is:
- Direct material $60
- Direct labour $35
Assume that the factory where the phones are made is also used to make tablets and the annual costs of the factory (rent, insurance, maintenance etc) are $8 million.
How much of this $8 million cost should be allocated to each smartphone made?
The factory is expected to make 200,000 smartphones and 100,000 tablets in the year. It takes 2 hours to make a smartphone and 4 hours to make a tablet.
Select one:
$15
$20
$40
$10
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