BarGraphs Corp. had capacity to produce 4,000 units of L3 using 40,000 kg of direct materials....
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BarGraphs Corp. had capacity to produce 4,000 units of L3 using 40,000 kg of direct materials. BarGraphs produced 3,850 units of L3 by processing 35,500 kg of direct materials. Conversion cost per unit is $7.00. BarGraphs can add or reduce manufacturing capacity in increments of 4,500 kgs. What would be the cost savings if BarGraphs decides to reduce manufacturing capacity by 4500 kgs? BarGraphs Corp. had capacity to produce 4,000 units of L3 using 40,000 kg of direct materials. BarGraphs produced 3,850 units of L3 by processing 35,500 kg of direct materials. Conversion cost per unit is $7.00. BarGraphs can add or reduce manufacturing capacity in increments of 4,500 kgs. What would be the cost savings if BarGraphs decides to reduce manufacturing capacity by 4500 kgs?
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Accounting Texts and Cases
ISBN: 978-1259097126
13th edition
Authors: Robert Anthony, David Hawkins, Kenneth Merchant
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