Byers Company Had the Following Department Information for the Month

question 53

Multiple Choice

Byers Company had the following department information for the month: $\begin{array}{lr}\text { Total materials costs } & \$ 48,000 \\\text { Equivalent units of materials } & 10,000 \\\text { Total conversion costs } & \$ 80,000 \\\text { Equivalent units of conversion costs } & 20,000\end{array}$ What is the total manufacturing cost per unit?

• A)$4.26.
• B)$4.00.
• C)$4.80.
• D)$8.80.

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Definitions:

Variable Overhead Rate

A rate that changes with the level of activity or production volume, applied to variable overhead costs.

Lubricants Variance

A difference between the expected and actual cost of lubricants used in a manufacturing or operational process.

Variable Overhead

Variable overhead consists of indirect production costs that vary with the level of output, such as utilities for manufacturing facilities.

Indirect Labor

The labor of employees who are not directly involved in the production process but support production through tasks such as maintenance and supervision.