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Group the costs of manufacturing candles. Indicate whether each of the following items should be classified as direct materials (DM), direct labor (DL), overhead (O), or none of these (N). Also indicate whether each is a prime cost (PC), a conversation cost (CC), or neither (N).
1. Depreciation of the cost of vats to hold melted wax
2. Cost of wax
3. Rent on the factory where candles are made
4. Cost of George's time to dip the wicks into the wax
5. Cost of coloring for candles
6. Cost of Ray's time to design candles for Halloween
7. Sam's commission to sell candles to Candles Plus
Discuss the issues that must be taken into consideration when setting selling prices, which is the usual reason given for the need to know the full cost.
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Oasimi Company, which has only one product, has provided following data concerning its most recent month of operations: Find out the unit product cost for the month under variable costing?
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Given the following information, Describe the budget line for consumer. Be sure to label the axis and give a number for vertical and horizontal intercepts. Slope? Meaning?
CollegePak Company produced and sold 60,000 units throughout the year just ended at an average price of $20 per unit. Variable manufacturing costs were $8 per unit, and variable marketing costs were $4 per unit sold.
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