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Company ABC produces two products, X and Y. Product X requires 3 units of direct materials and 2 hours of direct labor, while Product Y
- Company ABC produces two products, X and Y. Product X requires 3 units of direct materials and 2 hours of direct labor, while Product Y requires 4 units of direct materials and 3 hours of direct labor.
- The unit costs for direct materials are $10 for Product X and $12 for Product Y, while direct labor costs are $20 per hour.
- The company incurred $6,000 in manufacturing overhead costs during the period.
Requirements:
- Calculate the total manufacturing cost for each product.
- Determine the total cost of goods manufactured for both products combined.
- Analyze the cost differences between the two products.
- Provide recommendations for cost optimization.
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