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Pepita Manufacturing Company makes parts for the automobile industry, during August 2020, the following selected accounts summary was taken from the accounting records:
Direct Materials issued to production $900,000 Direct Labor 450,000Indirect Labor 120,000Manufacturing Facilities Insurance 10,000Manufacturing utilities 35,000Manufacturing depreciation 45,000
Production during August, 100, 000 units.
Required:
Problem 1: What was the cost per unit manufactured?
Problem 2: What of the manufacturing costs are fixed?
Problem 3: How the fixed costs change the cost per unit manufactured?
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