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What is the total cost of producing tires

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Reference no: EM133046162

Question - Wheel and Tire Manufacturing currently produces 1,000 tires per month. The following per unit data apply for sales to regular customers per unit:

Direct materials $20

Direct manufacturing labor $3

Variable manufacturing overhead $6

Fixed manufacturing overhead $10

Total manufacturing costs $39

The plant has capacity for 3,000 tires and is considering expanding production to 2,000 tires. What is the total cost of producing 2,000 tires?

Reference no: EM133046162

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