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Doran Technologies Produces a Single Product

Question 152

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Doran Technologies produces a single product.Expected manufacturing costs are as follows:
Variable costs
Direct materials $4.00 per unit
Direct labor $1.20 per unit
Manufacturing overhead $0.95 per unit

Fixed costs per month
Depreciation $ 6,000
Supervisory salaries 13,500
Other fixed costs 3,850

Estimate manufacturing costs for production levels of 25,000 units,30,000 units,and 35,000 units per month.

Correct Answer:

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At 25,000 units = [25,000 × ($4.00 + $1....

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