Question

7. Manufacturing costs for product X include direct variable overhead S2 per unit, and fixed ovuthead S3 per un for product X
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Answer #1

Answer: B. Increased by $190

Explanations:

No change in fixed even if change in production volume. So need find total variable cost.

Variable Costs Per unit
Direct materials $18
Direct labor $1
Variable overhead $2
Total Variable cost per unit $21

If production volume increased by 10 units, Then the

Change in manufacturing costs = 10 units x $19 variable cost per unit = $190

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