Haft Construction Company determines that 54,000 pounds of direct materials are needed for production in July. There are 3,200 pounds of direct materials on hand at July 1 and the desired ending inventory is 2,800 pounds. If the cost per unit of direct materials is $3, what is the budgeted total cost of direct materials purchases?

160,08 More test answers on https://studyhippo.com/managerial-final-quiz-questions/

Jones Corporation is preparing an aggregate production plan for washers for the next four quarters. The company’s expected quarterly demand is given in the following chart. The company will have 1,000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter. Following is other critical data: Production cost per unit = $250 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory) Hiring cost per worker = $1,000 Firing cost per worker = $2,000 Beginning number of workers = 10 Each worker can produce 100 units per quarter. Any worker on the staff at the end of the year will not be fired at that time. Given this data, what is the inventory carrying cost of a LEVEL plan? Regular production will vary each month. 5,000 units 4,000 units 6,000 units

$70,000 Inventory carrying cost = 7,000 × 10/unit = $70,000 More test answers on https://studyhippo.com/op-chapter-13-sales-and-operations-planning/

Which of the following describes the behavior of the fixed cost per unit?

Decreases with increasing production More test answers on https://studyhippo.com/acc-ii-3/

Which of the following describes the behavior of the fixed cost per unit:

Decreases with increasing production. More test answers on https://studyhippo.com/acct-ch-11/

Vendor analysis has the greatest potential for savings for items which have: high cost per unit. low annual cost-volume. low cost per unit. high annual usage. high annual cost-volume.

high annual cost-volume. More test answers on https://studyhippo.com/opmt-ch-15/

which of the following is not a reason for a direct materials quantity variance? a. spoilage of materials b.purchasing of inferior raw materials c.increased material cost per unit d.malfunctioning equipment

c. increased material cost per unit More test answers on https://studyhippo.com/acc102-ch-6-8/

Which of the following describes the behavior of the fixed cost per unit? A. decreases with increasing production B. decreases with decreasing production C. remains constant with changes in production D. increases with increasing production

A. decreases with increasing production More test answers on https://studyhippo.com/chapter-21-quiz-219/

Douglas Industries produced 5,500 units of product that required 2.5 standard hours per unit. The standard fixed overhead cost per unit is $2.20 per hour at 13,500 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. $250 favorable $250 unfavorable $550 favorable $550 unfavorable

$550 favorable Feedback: [13,500 hrs. – (5,500 units × 2.5 hours)] × $2.20 = $550 favorable. More test answers on https://studyhippo.com/accounting-chapter-22-performance-evaluation-using-variances-from-standard-costs/

Suppose that a plant manager uses economic batch sizes for production of a product. Suppose further that the setup cost is $50 per batch, the holding cost per unit per year is $10, the annual demand is 30,000 units, the firm operates (and experiences demand) 300 days per year, and the production rate per day is 1,000 units. What will be the maximum inventory level that this product ever reaches?

P = 1,000 units D = 30,000 / 300 = 100 S = $50 Q = √(2DS/(H(1- D/P))) = 577 Imax = Q(1-(D/P)) = 577(1-(100/1000)) = 519 More test answers on https://studyhippo.com/operations-management-tests/

Jordan Industries produced 6,000 units of product that required 1.5 standard hours per unit. The standard fixed overhead cost per unit is $2.05 per hour at 9,500 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. $7,175 favorable $7,175 unfavorable $1,025 favorable $1,025 unfavorable

$1,025 unfavorable Feedback: Actual hours should be multiplied by standard hours per unit to determine the fixed factory overhead volume variance. More test answers on https://studyhippo.com/accounting-chapter-22-performance-evaluation-using-variances-from-standard-costs/

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Cost Per Unit Flashcards, test questions and answers

Discover flashcards, test exam answers, and assignments to help you learn more about Cost Per Unit and other subjects. Don’t miss the chance to use them for more effective college education. Use our database of questions and answers on Cost Per Unit and get quick solutions for your test.

What is Cost Per Unit?

Cost per unit is a measure of cost efficiency in production and business operations. It represents the total cost associated with producing one unit of goods or services. This measure allows a business to compare the costs associated with different products, services, or processes and then determine which one is most cost effective.For example, if a company produces two products that require the same amount of inputs but have different selling prices, it can calculate the cost per unit for each product to determine which one yields higher profits. This gives businesses an idea of whether their production process is efficient and which product should be prioritized for production. The cost per unit formula involves taking all costs associated with making a product or service, like materials, labor, overhead expenses etc., and dividing them by the number of units produced: Cost per Unit = Total Costs / Number of Units Produced. By understanding this concept businesses can adjust their processes accordingly and make sure that they are not wasting resources on inefficient methods. In addition to helping businesses analyze their own operations, cost per unit also helps customers understand how much it costs companies to produce goods and services so they can decide if products are worth buying at certain prices. For example, electric cars typically have higher upfront costs than gas powered cars but lower running costs due to cheaper electricity prices than petrol/diesel fuel prices so by comparing the respective cost-per-unit figures for both types of vehicles customers can decide which option is more suitable for them in terms of overall value for money. Overall, understanding cost-per-unit is an important way for businesses to assess their own operations as well as helping customers make informed decisions when purchasing goods or services from them.

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