FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Change in direct materials cost per equivalent unit
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- Why is the number of equivalent units for materials only sometimes equal to the equivalent units for conversion?arrow_forwardVariable manufacturing overhead costs are treated as period costs under bothabsorption and variable costingTRUEFALSEarrow_forwardWhat is meant by the term equivalent units, with regards to process costing?arrow_forward
- how traditional costing switch over activity based costingarrow_forwardWhat is the unit product cost under variable costing?arrow_forwardSpree Party Lights overhead expenses are: Indirect material, pounds per unit 0.15 Indirect material, cost per pound $2 Indirect labor hours 1 Indirect labor rate per hour $16.00 Variable maintenance per unit $0.70 Variable utilities per unit $0.10 Supervisor salaries $11,000 Maintenance salaries $8,000 Insurance $3,000 Depreciation $1,500 Prepare a manufacturing overhead budget if the number of units to produce for January, February, and March are 2,500, 3,000, and 2,600, respectively. Spree Party Lights Manufacturing Overhead Budget For the Quarter Ending January - March January February March Units to Produce Variable Costs $4 Total Variable Manufacturina Costs $1 $4arrow_forward
- variable costs change in direct proportion to a change in the activity level. True or False?arrow_forwardWhen using the high-low method to estimate costs, the formula “Change in Cost divided by Change in Units” (or “Change in Total Cost divided by Change in Activity Level”) is used to estimate the: Fixed cost per unit Mixed cost per unit Profit per unit Indirect cost per unit Variable cost per unit Differential cost per unit Opportunity cost per unitarrow_forwardExplain unit product cost under absorption costing.arrow_forward
- what is the weighted average cost per unitarrow_forwardPrime cost is? A)Group of answer choices B)indirect materials cost and direct labor cost. C)direct materials cost and direct labor cost. D)direct labor cost and indirect labor cost. E)direct materials cost and indirect labor cost.arrow_forwardHow is conversion costs per equivalent unit calculated?arrow_forward
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