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  • Company RST produces a product with the following costs per unit: direct materials $25, direct labor $20, and variable manufacturing overhead $10.
  • Fixed manufacturing overhead is $15,000 per month, and fixed selling and administrative expenses amount to $5,000 per month.

• Requirements:

  • Calculate the total manufacturing cost per unit.
  • Determine the total cost of goods manufactured for a production run of 3,000 units.
  • Compute the total cost per unit including fixed manufacturing overhead and selling/administrative expenses.
  • Discuss the cost implications of different production levels.