The Assembly Department of ByteSize,Inc

question 34

Multiple Choice

The Assembly Department of ByteSize,Inc.,manufacturer of computers,incurred $280,000 in direct material costs and $70,000 in conversion costs.The equivalent units of production for direct materials and conversion costs are 1500 and 600,respectively.The weighted-average method is used.The cost per equivalent unit of production (EUP) for conversion costs is ________.(Round your answer to the nearest cent.)

• A) $116.67 per EUP
• B) $46.67 per EUP
• C) $466.67 per EUP
• D) $186.67 per EUP

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to individual products or job orders based on a predetermined formula.

Machine-Hours

The quantity of time machines are in operation, regarded as a factor in production cost calculations.

Casting

A manufacturing process where a liquid material is poured into a mold and solidifies to take on a specific shape.

Finishing

is the process of completing the final stages of manufacturing to prepare products for sale, such as painting, polishing, or packaging.