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Bramble, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows:
Direct materials and direct labour $12.20
Variable overhead 2.80
Fixed overhead 8.40
Total $23.40
Question 1: The fixed overhead is an allocated common cost. How much is the relevant cost of the wicket?
Option 1: $23.40
Option 2: $15.00
Option 3: $12.20
Option 4: $20.60
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