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Question #2: The Feline Corporation uses standard costing and developed the following static budget for 2018...

Question #2: The Feline Corporation uses standard costing and developed the following static budget for 2018 for its two products. Costs are shown in total, not per unit. All direct costs are variable costs. In addition, the company budgeted $6,000,000 for manufacturing overhead. Feline applies manufacturing overhead using direct materials dollars as the allocation base.

Large cat kennels

Small cat kennels

Production (in units)

Direct materials cost

Direct labor cost

10,000

$1,000,000

$500,000

20,000

$1,000,000

$1,000,000

Feline actually produced 7,500 large cat kennels in 2018, incurring $800,000 in direct materials and $450,000 in direct labor to do so. Feline actually produced 21,000 small cat kennels in 2018, incurring $1,100,000 in direct materials and $1,300,000 in direct labor to do so. Actual manufacturing overhead was $7,600,000.

Required: Calculate the standard manufacturing cost per unit for each large cat kennel.

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