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Taran Company incurred the following costs for the months of January and February. Type of Cost January February Insurance 5000 5000 Utilities 4000 6000 Depreciation
Taran Company incurred the following costs for the months of January and February.
Type of Cost | January | February |
Insurance | 5000 | 5000 |
Utilities | 4000 | 6000 |
Depreciation | 3500 | 3500 |
Materials | 10000 | 20000 |
Assume that output was 5000 units in January and 10000 units in February, utility cost is a mixed cost, and the fixed cost of utilities was 3000. What was the variable rate per unit of output for utilities cost?
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