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If one unit of Product Z2 used $300 of direct materials and $250 of direct labor, was assigned overhead at the rate of 30% of

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Answer #1

Total cost of unit

= Direct Materials + Direct Labor + Overhead

= 300 + 250 + (250*30%)

= 625

Gross profit = Sales price - Cost

= 800 - 625

= 175

Option D

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