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X Company manufactures a single product and estimates its total variable manufacturing costs each month. Each unit of product requires 1.4 pounds of direct material, and the price per pound is $21.30. It takes two hours of direct labor time to manufacture a unit of product. Direct labor employees are paid $13.00 per hour. The monthly overhead cost function is $3,400+$2.05X, where X is the number of units produced.
If production next month is expected to be 940 units, what are estimated total variable manufacturing costs?
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What amount of the acquired earnings and profits deficit of $30,000 can be used to offset Shipyard's current earnings and profits for 2011?"
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