Question: The following cost behavior patterns describe anticipated manufacturing costs for 2013: raw material, $7/unit; direct labor, $10/unit; and manufacturing overhead, $240,000 + $8/unit. Required: If

The following cost behavior patterns describe anticipated manufacturing costs for 2013: raw material, $7/unit; direct labor, $10/unit; and manufacturing overhead, $240,000 + $8/unit.

Required:
If anticipated production for 2013 is 30,000 units, calculate the unit cost using variable costing and absorption costing. Explain the difference.

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