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Mallett Manufacturing Co. expects to make 54,000 chairs during 2011. The company made 9,000 chairs in January. Materials and labor costs for January were $45,000 and $45,000, respectively. Mallett produced 3,000 chairs in February. Materials and labor costs for February were $15,000 and $15,000, respectively. The company paid the $324,000 annual rental fee on its manufacturing facility on January 1, 2011. Ignore other manufacturing overhead costs.
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