Company X manufactures widgets for a cellphone manufacturer. Cost estimates at output 100000 are as...

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Accounting

Company X manufactures widgets for a cellphone manufacturer. Cost estimates at output 100000 are as follows: direct materials, R500000; direct labour, R400000; production overheads, R350000; non-production overheads, R120000. Cost estimates at output 150000 are as follows: direct materials, R750000; direct labour, R600000; production overheads, R450000; and non-production overheads, R120000. Using the high-low method, what is the estimated cost for an output of 75000 units?
a.
R1060000
b.
R975000
c.
R1095000
d.
R825000

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