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The following are monthly totals taken from the log of a colorphotocopying machine used by the Skywalker Company. Cost wasbased on a flat fee plus a cost per copy made after a minimumnumber of copies had been made each month.
Month # ofcopies Total cost
January 35,200 $10,800
February 30,400 9,600
March 32,900 10,225
April 40,300 12,075
May 38,400 11,600
June 48,900 14,225
Part a
To differentiate the variable and fixed costs in the use of thismachine for future planning, use the high-low method to determinethe variable cost per copy and compute the flat fee.
Part b
Calculate the total cost for using the photocopying machine if44,000 copies are made.
In August direct labor was 60% of conversion cost. If the manufacturing overhead for the month was $54000 and the direct materials cost was $34000, the direct labor cost was:
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