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The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product:
Production volume 3,000 units 4,000 units
Direct materials $76.70 per unit $76.70 per unit
Direct labor $39.70 per unit $39.70 per unit
Manufacturing Overhead $94.80 per unit $76.30 per unit
The best estimate of the total variable manufacturing cost per unit is:
A. $76.70
B. $116.40
C. $20.80
D. $137.20
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