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Mike's Radiator Services specializes in the repair and replacement of radiators for passenger vehicles. Variable and fixed costs related to installation activities for the
Mike's Radiator Services specializes in the repair and replacement of radiators for passenger vehicles. Variable and fixed costs related to installation activities for the most recent month (January) are listed below: Item Number of radiators replaced 140 Variable expenses: Direct materials (new radiators) $70,000 Direct labour (2 hours per installation) Indirect materials 7,000 700 Fixed expenses: Installation supervisor's wages $12,992 Equipment depreciation Insurance and utilities for garage 1,624 1,204 Required: 1. Calculate the per unit amounts for each of the variable expense and fixed expense items in January. Item Variable expenses: Direct materials (new radiators) Direct labour (2 hours per installation) Indirect materials Fixed expenses: Installation supervisor's wages Equipment depreciation Insurance and utilities for garage. Per Unit < Prev 3 of 10 Next >
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