Scentsation, Inc., budgeted for 12,000 bottles of perfume Oui during the month of May. The unit cost

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Scentsation, Inc., budgeted for 12,000 bottles of perfume Oui during the month of May. The unit cost of Oui was $20, consisting of direct materials, $7; direct labor, $8; and factory overhead, $5 (fixed, $2; variable, $3).

a. What would be the unit cost if 10,000 bottles were manufactured?

b. What would be the unit cost if 20,000 bottles were manufactured?

c. Explain why a difference occurs in the unit costs.

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Principles Of Cost Accounting

ISBN: 9780840037039

15th Edition

Authors: Edward J. Vanderbeck

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Question Posted: Jan 07, 2012 07:58 AM

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Scentsation, Inc., budgeted for 12,000 bottles of perfume Oui during the month of May. The unit cost

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a and b Unit cost at production levels of 10000 and 20000 units 10 000 units 20000 units D...View the full answer

Principles Of Cost Accounting

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