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Business, 29.04.2021 21:10 jaelynnm

These costs were incurred to produce 25,000 units of product. Variable manufacturing overhead was 80% of the direct materials cost. In 2020, the direct material and variable overhead costs per unit will increase by 15%, but the direct labor costs per unit are not expected to change. Fixed manufacturing costs are expected to increase by 7.5%. Required: Prepare a cost estimate for an activity level of 20,000 units of product in 2020.

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