Solved: What happens to unit cost as the number of units produced, Accounting Basics

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What happens to unit cost as the number of units produced

Flexible Budget for Various Levels of Production

Budgeted amounts for the year:

Materials	2 leather strips @ $7.00
Labor	1.5 hr. @ $18.00
VOH	1.5 hr. @ $1.20
FOH	$6,800

Required:

1.Prepare a flexible budget for 3,500, 4,000, and 4,500 units.
2.CONCEPTUAL CONNECTION Calculate the unit cost at 3,500, 4,000, and 4,500 units. (Note: Round unit costs to the nearest cent.) What happens to unit cost as the number of units produced increases?

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Accounting Basics: What happens to unit cost as the number of units produced

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