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Brady Ltd Uses a Normal Absorption Costing System in Which

Question 68

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Brady Ltd uses a normal absorption costing system in which the overhead rate and variable manufacturing costs have remained unchanged for the last 2 years. During the current year the following activity occurred: The firm had no beginning or ending work in process inventories. However, there were 1,000 units in beginning finished goods.
The variable product cost per unit was


A) $4.90
B) $5.15
C) $4.00
D) $4.25

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