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Masley Corporation has provided he following data for its two most recent years of operation: Variable manufacturing cost per unit produced: Direct materials $13 Direct
Masley Corporation has provided he following data for its two most recent years of operation:
Variable manufacturing cost per unit produced:
Direct materials $13
Direct labor $6
Variable Manufacturing overhead $4
Fixed manufacturing overhead per year $140,000
In year 1, 10,000 units were produced and in year 2, 7,000 units were produced.
Required:
a) assume the company uses absorption costing. Compute the unit product cost in each year.
b) assume the company uses variable costing. Compute the unit product cost in each year.
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