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Unformatted text preview: the fixed manufacturing overhead constituent of the total product cost. 4) The two wil probably disagree. The President of the neighbouring company will want to include only di cost at his "at cost" price estimation. The President of the factory will include all the product costs in his " Since the factory operates at full capacity, the President could charge only the variable cost to the custom and call it "at cost" price. All the fixed costs would be already absorbed. CT COST 70,000 105,000 6,000 20,000 45,000 246000 6,000 INDIRECT ase due to irect material "at cost" price. mer...
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