Mentone Inc. has $800,000 in fixed manufacturing costs and capacity to produce 5,000 units of...
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Accounting
Mentone Inc. has $800,000 in fixed manufacturing costs and capacity to produce 5,000 units of product in total. During 2020 Mentone produced 2,000 units of Product A and 1,000 units of Product B. If Mentone allocates its costs using Practical Capacity, what is the total estimated cost of its unused (i.e. excess) capacity?
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