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  1. business
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  3. produces two products, a and z. in the year ending

produces two products, A and Z. In the year ending 30 April 2020, it produced...

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Accounting

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produces two products, A and Z. In the year ending 30 April 2020, it produced 6,000 A and 12,500 Z and incurred costs of $1,850,000 The costs incurred are such that 30% are variable. 60% of these variable costs vary with the number of Z produced, with the remainder varying with the output of A. The budget for the three months to 31 October 2020 is being prepared using an incremental approach based on the following: All costs will be 6% higher than the average paid in the year ended 30 April 2020. Efficiency levels will be unchanged. Expected output: A 1,350 units Z 6,890 units Instructions: What is the budgeted cost for the output of A (to the nearest $100) for the 3 months ending 31 October 2020

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