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Casio Company Manufactures Stereos

Question 72

Multiple Choice

Casio Company manufactures stereos.For each unit,$3,500 of direct material is used and there is $2,500 of direct manufacturing labor at $25 per hour.Manufacturing overhead is applied at $40 per direct manufacturing labor hour.Compute the cost of each unit.


A) $2,500
B) $4,845
C) $6,045
D) $7,750
E) $9,500

Correct Answer:

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