Week 2 Homework Assignment
1. DragNet Manufacturing sold 72,000 units of its product for $95 per unit in 2014. Variable cost per unit is $51.30 and total fixed costs are $5,350,000.
2. Trendy Manufacturing uses normal costing based on a job-order costing system. Indirect costs are allocated to jobs using a plantwide overhead rate based on machine hours. At the beginning of 2014, the company made the following estimates:
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