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What is the relevant cost per unit

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Question - Vaughn Manufacturing produces 5000 units of part A12E. The following costs were incurred for that level of production:

Direct materials $65000

Direct labor 170000

Variable overhead 85000

Fixed overhead 175000

If Vaughn buys the part from an outside supplier, $55000 of the fixed overhead is avoidable. What is the relevant cost per unit of part A12E?

Reference no: EM133104735

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