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Question - Halifax Inc. produces retractable pens. November budgeted production costs are given below:

Pens to be produced 100,000

Direct material (variable) $30,000

Direct Labor (variable) $50,000

Supplies (variable) $25,000

Supervision (fixed) $40,000

Depreciation (fixed) $30,000

Other (fixed) $10,000

In December, Halifax expects to produce 130,000 pens. Assuming no structural changes, what is Halifax's budgeted production cost per pen for December?

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