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b Murphy Incorporated, which produces a single product, has provided the following data for its most recent month of operation: 7,000 Number of units produced
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Murphy Incorporated, which produces a single product, has provided the following data for its most recent month of operation: 7,000 Number of units produced Variable costs per unit: Direct materials Direct labor $ 86 $71 Variable manufacturing overhead $2 Variable selling and administrative expenses Fixed costs: $7 Fixed manufacturing overhead $ 378,000 Fixed selling and administrative expenses $ 98,000 The company had no beginning or ending inventories. Required: a. Compute the unit product cost under absorption costing. b. Compute the unit product cost under variable costing. Unit Product Cost a. Absorption costing b. Variable costing Step by Step Solution
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