Question
. Sherman, Inc. manufactures chainsaws that sell for $58. Each chainsaw uses $10 in direct materials and $3 in direct labor per unit. Sherman has
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Sherman, Inc. manufactures chainsaws that sell for $58. Each chainsaw uses $10 in direct materials and $3 in direct labor per unit. Sherman has two activities: Machining, which is applied at the rate of $2 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, Sherman made 200 chainsaws, using 1,000 machine hours in 40 batches. What is the total manufacturing cost for one chainsaw? Multiple Choice $13 $27 $30 $14
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