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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Please do not give solution in image format thank you

Transcribed Image Text:Babuca Corporation has provided the following production and total cost data for
two levels of monthly production volume. The company produces a single
product.
Production
volume
Direct
materials
Direct labor
Manufacturing
overhead
15,400 units
$2,157,940
$2,227,870
$2,251,180
$2,297,800
$883,960
$254,100
$1,012,800
17,000 units
$975,800
$280,500
$1,040,480
The best estimate of the total cost to manufacture 16,500 units is closest to: (Do
not round intermediate calculations.)
Expert Solution
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Step 1: Introduce to variable cost and fixed cost
VIEW Step 2: Working for direct materials cost per unit and direct labor cost per unit
VIEW Step 3: Working for variable manufacturing overhead per unit and total fixed manufacturing overhead
VIEW Step 4: Working for total manufacturing cost at 16,500 units
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