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Question(s) / Instruction(s):

Assume that a batch of 1000 carving knives requires 2,000 parts, 20 direct manufacturing labor-hours, and 30 minutes of inspection time. What are the indirect manufacturing costs per carving knife to produce a batch of 1000 carving knives, assuming the previous plant-wide allocation rate method is used?

a.            $8.00

b.            $9.80

c.             $8000.00

d.            $9800.00

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