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Q1) XYZ Corp. produces video games which it sells for $36 each.  Data available for months of October and November is given below.





1,600 units

3,000 units


2,800 units

2,800 units

Variables manufacturing cost per game



Sales commission per game



Total fixed manufacturing overhead



Total fixed marketing and administrative costs



Variables manufacturing cost program includes $7 for direct material.

a ) Find out unit product cost for each month by using absorption, variable and throughput costing approaches.

b)  Make the income statement for November by using variable costing approach.

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