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A company manufactures 1,000 units of product X per year. The cost data is given below: Direct Materials Direct Labor Variabl

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Answer #1

Answer- $12

Explanation-

Variable cost refers to that cost which varies with the level of output. Here, The variable costs are direct materials, direct labour and variable manufacturing overhead. Accordingly,

Variable cost to manufacture 1 unit of product X = $12 per unit

(Direct material +direct labour + variable manufacturing overhead)

= ($5 + 4 + 3 )

= $12 per unit.

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