BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
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ABC Sdn Bhd currently produces 1, 000 tires per month. The following per unit data apply for sales to regular customers:Direct materials ____ RM20Direct manufacturing labor ____ RM3Variable manufacturing overhead ____ RM6Fixed manufacturing overhead ____ RM10Total manufacturing costs ____ RM39The 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?
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RM39, 000
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RM78, 000
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RM68, 000
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RM62, 000
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Explanation:
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