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Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The

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Answer #1
Difference Per unit
Production Volume 6800 8000 1200
Direct materials 402560 473600 59.2
Direct labor 153000 180000 22.5
Manufacturing overhead 1007900 1024100 16200 13.5 (16200/1200)
Total Manufacturing cost 1563460 1677700 95.2
The best estimate of total variable manufacturing cost per unit is:
$95.20
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