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Points: 0 of 1 0 Spade Manufacturing produces surfboards. The company uses a normal - costing system and allocates manufacturing overhead on the basis of
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Spade Manufacturing produces surfboards. The company uses a normalcosting system and allocates manufacturing overhead on the basis of direct manufacturing laborhours. Most of the company's production and sales occur in the first and second quarters of the year. The company is in danger of losing one of its larger customers, Soho Wholesale, due to large fluctuations in price. The owner of Spade has requested an analysis of the manufacturing cost per unit in the second and third quarters. You have been provided the following budgeted information for the coming year:
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Requirement and Calculate the total manufacturing cost per unit for the second and third quarter assuming the company allocates manufacturing overhead costs based on the budgeted manufacturing overhead rate determined for each quarter and an annual budgeted manufacturing overhead rate.
First identify the formula to calculate the total manufacturing cost per unit, then enter the appropriate amounts to calculate the total cost per unit for second and third quarter based on the budgeted manufacturing overhead rate determined for each quarter and an annual budgeted manufacturing overhead rate for the year. Abbreviation used: overhead, mat materials, and Var. variable.
tableDirect labor per unit,Direct mat per unit,Var. OH per unit,Fixed per unit,tableTotal costper unitQtr Qtr Annual
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