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The management team at Coronado Motors is having a discussion about the standard costs for its most popular boat motor. For the year just ended,
The management team at Coronado Motors is having a discussion about the standard costs for its most popular boat motor. For the year just ended, all variable cost variances were slightly favorable. Some on the management team believe the team could be a bit more aggressive on the standard specifications (related to DL and variable-MOH, which is applied using DL hours), while others believe the best approach is to stick with the standards currently in place, shown here: Direct labor 3 hours per unit @ $16.00/DL hour Variable-MOH 3 hours per unit @ $7.20/DL hour (a) Given the current standards, what is the expected DL and variable-MOH cost per unit? (Round answers to 2 decimal places, e.g. 15.25.) DL cost per unit Variable-MOH cost per unit
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