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Problem 8-13 Comprehensive Problem with Labour Fixed [LO1, LO2, LO3, LO4] Zurgot Inc. has just organized a new division to manufacture and sell specially
Problem 8-13 Comprehensive Problem with Labour Fixed [LO1, LO2, LO3, LO4] Zurgot Inc. has just organized a new division to manufacture and sell specially designed computer tables, using select hardwoods. The division's monthly costs are shown in the schedule below. Manufacturing costs: Variable costs per unit: Direct saterials Variable manufacturing overhead Selling and administrative costs: Variable $ $ 178 13 Fixed manufacturing overhead costs (total) $433,590 15% of sales Fixed (total) $272,670 Zurgot regards all of its workers as full-time employees, and the company has a long-standing no-layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labour costs in its fixed manufacturing overhead. The tables sell for $496 each. During the first month of operations, the following activity was recorded: Units produced Units sold 4.470 13,210
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