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X Company uses account analysis to estimate total overhead costs for each month. In May,...

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Accounting

X Company uses account analysis to estimate total overhead costs for each month. In May, when production was 1,200 units, the plant manager classified each overhead cost item as fixed and variable as follows:

Cost Item Total cost Cost Behavior

supplies $25300 100% variable

Utilities $18500 25% fixed

Maintenance $18500 100% fixed

question is If September production is expected to be 1,380 units, what will variable costs per unit be?

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