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What is Optiplex Custom Generator Cost Analysis about?

Optiplex Corporation signed a contract to manufacture custom generators due to excess capacity from an economic downturn. Direct costs of the project totaled $87,000 including design, materials, labor, and overhead. However, materials included $5,000 in abnormal waste. Variable overhead is $2 per direct labor hour and fixed overhead was estimated to be $9 per hour for the year. The balance sheet should report the inventory value as of June 30.

Author

Freelance Worker

Language

EN