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Remaining Time: 1 hour, 04 minutes, 07 seconds. Question Completion Status: QUESTION 5 DIDI Corporation estimated its product costs and production volume for the
Remaining Time: 1 hour, 04 minutes, 07 seconds. Question Completion Status: QUESTION 5 DIDI Corporation estimated its product costs and production volume for the upcoming year by quarter as follows: 1st Quarter 2nd 3rd 4th Quarter Quarter Quarter Direct raw materials $ 390,000 $ 235,000 $ 350,000 S 792,000 Direct labor 312,000 188,000 280,000 633,600 Manufacturing 234,000 423,000 420,000 overhead 316,800 Total production $ 936,000 $ 846,000 costs $ 1,050,000 $ 1,742,400 Estimated production in units 39,000 23,500 35,000 79,200 14 points Saved The company expects a significant increase in volume in the fourth quarter due to holiday sales. The company does not expect overhead costs, which are predominately fixed, to vary with production volume or to vary significantly from previous years. Selling prices are established using a cost plus pricing strategy where cost is the product's estimated quarterly cost. However, the company finds the wide variations in short- term init cost difficult to use. Specifically, unit cost fluctuations complicate pricing decisions and many other decisions where cost is a consideration. Required: 1) Compute the company's expected cost per unit for each quarter of the year. 2) How would you suggest that overhead costs be estimated to solve the company's unit cost problem? Calculate the unit cost per quarter based on your recommendation. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Click Save and Submit to save and submit. Click Save All Answers to save all answers. 80 229 MacBook Air Save All Answers Save and Submit
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