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Question: Cool Air Ltd. manufactures only one type of air conditioner and has two divisions, the Compressor Division, and thecompressor is $77. (Ignore changes in inventory.) The fixed costs for the Compressor Division are assumed to be the same over

How much is assembly cost per completed air condition?

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Answer #1

Cost for assembly

Direct material + Direct labor + Variable overhead + assembly units fixed cost = $34.00 + $14.50 + $6.00 + $ 15.00 = $69.50

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