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Canada Manufacturing currently produces 1,000 units per month. The following per unit data for 1,000 units apply for sales to retailers: Direct materials $75 Direct
Canada Manufacturing currently produces 1,000 units per month. The following per unit data for 1,000 units apply for sales to retailers:
Direct materials $75
Direct manufacturing labor 20
Variable manufacturing overhead 25
Fixed manufacturing overhead 30
Total manufacturing costs $150
The plant has a capacity of 3,000 units and is considering expanding production to 3,000 units. What is the total cost of producing 3,000 units?
Select one:
a. $450,000
b. None of the options
c. $390,000
d. $345,000
e. $420,000
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