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Khanam Company, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $97
Units in beginning inventory 500
Units produced 8,400
Units in ending inventory 400
Variable costs per unit:
Direct materials $20
Direct labour $37
Variable manufacturing overhead $1
Variable selling and administrative $11
Fixed manufacturing overhead $67,200
Fixed selling and administrative $161,500
Problem 1: What is the amount of fixed overhead released under absorption costing?
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