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Product X Product Y Total Sales volume (units) 400 600 1,000 ...

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Accounting

Product X Product Y Total
Sales volume (units) 400 600 1,000
Revenue $60,000 $60,000 $120,000
Variable costs
Direct materials $25,000 $15,000 $40,000
Direct labor $15,000 $10,000 $25,000
Contribution margin $20,000 $35,000 $55,000
Fixed costs $50,000
Profit $5,000

Use direct labor dollars as the cost driver.

Compute allocated fixed costs for Product X:

Group of answer choices

$50,000

$30,000

$45,000

$20,000

$2.00

Answer & Explanation Solved by verified expert
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