Suppose that Sleek Manufacturing is developing a new table targeted to sell for less than $10 and
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................................................Alternative........................ A Alternative B
Direct material costs............................. ......$2...................................... $2
Direct labor cost............. 0.25 hour at $10 per hour............. 0.20 hour at $12 per hour
Overhead costs....... 50 percent of direct labor costs.. $0.40 per dollar of direct materials
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Related Book For
Managerial Accounting
ISBN: 978-1133940593
10th edition
Authors: Susan V. Crosson, Belverd E. Needles
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