What Were the Equivalent Units of Production for Material Costs

question 24

Multiple Choice

What were the equivalent units of production for material costs for May?

• A) 46,300 units.
• B) 47,800 units.
• C) 49,200 units.
• D) 49,800 units.

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Definitions:

Plantwide Predetermined

A single overhead rate calculated for an entire plant or facility, used to allocate overhead costs to all products equally.

Direct Labor-Hour

A measure of the amount of time spent by workers directly involved in the manufacturing process to produce a single unit.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate estimated overhead costs to products or job orders based on a chosen activity base.

Machine-Hours

A measurement of the amount of time machinery is operated, used in calculating production costs and efficiency.