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Question: Axle and Wheel Manufacturing currently produces 1,000 axles per month. The following per unit dat...
Axle and Wheel Manufacturing currently produces 1,000 axles per month. The following per unit data apply for sales to regular customers:
Direct materials $200
Direct manufacturing labor 30
Variable manufacturing overhead 60
Fixed manufacturing overhead 40
Total manufacturing costs $330
The plant has capacity for 2,000 axles.
Required:
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What is the total cost of producing 1,000 axles?
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What is the total cost of producing 1,500 axles?
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What is the per unit cost when producing 1,500 axles?
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Financial accounting
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
9th edition
978-0132751216, 132751127, 132751216, 978-0132751124
