Cinder Company Had the Following Department Information for the Month

question 32

Multiple Choice

Cinder Company had the following department information for the month: $\begin{array}{lr}\text { Total materials costs............................. } & \$ 80,000 \\\text { Equivalent units of materials................. } & 10,000 \\\text { Total conversion costs. ......................... } & 120,000 \\\text { Equivalent units of conversion costs........ } & 20,000\end{array}$
How much is the total manufacturing cost per unit?

• A)$14.00
• B)$6.67
• C)$6.00
• D)$8.00

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Definitions:

Responsibility Levels

This concept refers to the hierarchy within an organization that delineates the scope of authority, decision-making power, and accountability.

Budget Period

The specific time period for which a budget is prepared, outlining expected revenues, expenses, and resource allocations.

Future Outcomes

Predictions or expectations about what will happen in the future, often used in the context of financial forecasting or planning.

Master Budget

A comprehensive financial planning document that consolidates all of a company's budgets and plans for operations, financing, and investment activities.