Company OPQ produces two products, X and Y. For Product X, the direct materials cost is $40
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Question:
- Company OPQ produces two products, X and Y. For Product X, the direct materials cost is $40 per unit, and it requires 7 hours of direct labor at $35 per hour. For Product Y, the direct materials cost is $50 per unit, and it requires 8 hours of direct labor at $40 per hour.
- The company incurred $20,000 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.
Expert Answer:
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