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Calculation of cost per equivalent units.
During June, the varnishing department incurred costs of $80,250 for direct labor. The beginning inventory was 3,500 units and 10,000 units were transferred to the varnishing department from the sanding department during June. The direct labor cost in the beginning inventory was $27,270. The ending inventory consisted of 2,000 units which were 25% complete with respect to direct labor. What is the cost per equivalent unit for direct labor?
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