Solution-Explain why a difference occurs in the unit costs

Explain why a difference occurs in the unit costs

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Reference no: EM132653524

Question - Computing unit costs at different levels of production Scentsation, Inc., budgeted for 12,000 bottles of perfume Oui during the month of May. The unit cost of Oui was $20, consisting of direct materials, $7; direct labor, $8; and factory overhead, $5 (fixed, $2; variable, $3).

Required -

a. What would be the unit cost if 10,000 bottles were manufactured?

b. What would be the unit cost if 20,000 bottles were manufactured?

c. Explain why a difference occurs in the unit costs.

Reference no: EM132653524

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Explain why a difference occurs in the unit costs

Reference no: EM132653524

Reference no: EM132653524

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