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Oksana_A [137]
3 years ago
7

EA14.

Business
1 answer:
Nat2105 [25]3 years ago
7 0

Answer:

$225 and $265

Explanation:

The computation is shown below:

For variable method:

= Direct materials per unit +  direct labor per unit + variable manufacturing overhead per unit

= $70 + $110 + $45

= $225

For absorption method:

= Direct materials per unit +  direct labor per unit + variable manufacturing overhead per unit + fixed manufacturing overhead per unit

= $70 + $110 + $45 + $40

= $265

The fixed manufacturing overhead per unit would be

= (Total fixed manufacturing overhead) ÷ (number of units produced)

= ($800,000) ÷ (20,000 units)

= $40

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