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Tinker Toys incurs $5 per toy in direct materials, labor, and variable overhead cost. Additionally, it incurs $100,000 in fixed selling and administrative expenses and

Tinker Toys incurs $5 per toy in direct materials, labor, and variable overhead cost. Additionally, it incurs $100,000 in fixed selling and administrative expenses and 200000 in fixed manufacturing overhead per month.

If Tinker produces 100,000 toys per month, calculate the total:

A. Variable Cost Per Toy

B. Absorption Cost Per Toy

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