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Waterways Shop can make 1000 units of a necessary component with the following costs: Direct Materials $40000 Direct Labor 6

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Answer #1

Answer: $8,000

Explanation

Fixed overhead cost =($ 55,000 + 2,000) - ($ 40,000+6,000+3,000)

= $57,000 - $49,000

= 8,000

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