These are sample practice MCQs created for exam preparation. These are NOT official exam questions.
OPERATIONS DATA: Manufacturing capacity is 50,000 units/month. PRODUCTION REPORT: September output was 38,500 units. COST ACCOUNTING: Fixed costs $420K/month, variable costs $18/unit. What was the total cost per unit in September?
Question:
OPERATIONS DATA: Manufacturing capacity is 50,000 units/month. PRODUCTION REPORT: September output was 38,500 units. COST ACCOUNTING: Fixed costs $420K/month, variable costs $18/unit. What was the total cost per unit in September?
OPERATIONS DATA: Manufacturing capacity is 50,000 units/month. PRODUCTION REPORT: September output was 38,500 units. COST ACCOUNTING: Fixed costs $420K/month, variable costs $18/unit. What was the total cost per unit in September?
Options
Answer: (A) $28.91
Explanation:
Total cost = $420K + (38,500 × $18) = $420K + $693K = $1,113K. Cost per unit = $1,113K/38,500 = $28.91.
Explanation:
Total cost = $420K + (38,500 × $18) = $420K + $693K = $1,113K. Cost per unit = $1,113K/38,500 = $28.91.
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