- Assume That the Product Price Is $4 Per Unit

question 26

Multiple Choice

- Assume that the product price is $4 per unit and that the hourly wage for workers is $12.Neither price nor wage changes with output.In Table 30.3,the contribution to total revenue of the fourth worker hired is

• A)$76 per hour.
• B)$16 per hour.
• C)$4 per hour.

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Definitions:

Process Costing

An accounting methodology used for homogeneous products, which assigns average costs to units of output on the basis of the process they undergo.

Weighted-Average Method

An inventory valuation method averaging the cost of goods available for sale and assigning an average cost to each unit.

Assembly Department

A segment within a manufacturing facility where parts are assembled into final products.

Units Transferred

The quantity of goods moved from one production process or department to another in the manufacturing process.