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The balance in beginning Work in Process at Greencastle Rubber Company for direct labor was $150,000. During the month of March, an additional $738,978 of direct labor was incurred, and 32,400 pounds of rubber were produced. At the end of March, 10,700 pounds of rubber were in process and the units were 60 percent complete. At the start of March, the company had 5,400 pounds of rubber that were 40 percent complete.
Problem 1: Calculate the cost per equivalent unit for labor, assuming that labor is added uniformly throughout the production process. (Round answer to 2 decimal places, e.g. 25.26.)
Find out the value for the manager in conducting a cost-volume-profit analysis.
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Provide one example of an appropriate allocation base for each item. (For instance, an appropriate allocation base for item 5 is the quantity of direct material
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Explain why starting a large number of wafers into production will boost profit even though the chips that ultimately result from the wafers are ones
XYZ Company makes 400 widgets. What is the effect on income if the company instead buys the widgets from an outside supplier for $44 per unit?
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