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Toyota produces two types of cars, Corolla and Camry. The following cost data pertains to these models: Cost Item Corolla Camry Direct Material $8,000/unit $12,000/unit
Toyota produces two types of cars, Corolla and Camry. The following cost data pertains to these models:
Cost Item | Corolla | Camry |
Direct Material | $8,000/unit | $12,000/unit |
Direct Labor | $3,000/unit | $4,000/unit |
Overhead | 180% of direct labor cost | 150% of direct labor cost |
Additional Information:
- Production for Corolla: 50,000 units
- Production for Camry: 40,000 units
Requirements:
- Calculate the total cost for Corolla and Camry.
- Determine the cost per unit for each model.
- Prepare a cost sheet for both models.
- Compare the cost structures and suggest which model is more cost-effective.
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