The Following Costs Were for Optimal View Inc

question 59

Multiple Choice

The following costs were for Optimal View Inc., a contact lens manufacturer:At an output level of 425 lenses, per unit variable cost is calculated to be:

• A) $34.29.
• B) $48.00.
• C) $30.00.
• D) $35.56.
• E) $40.00.

---

Definitions:

Direct Labour Hour

A measure of the amount of time spent by workers directly involved in the manufacturing process of a product.

Static Budget

A budget that is based on a fixed set of assumptions and does not change or adapt to variations in business activity levels.

Planned Activity Level

The anticipated volume of output or activity, often used in budgeting and performance measurement processes.

Machine Hours

A measure of the time that a machine is operated during a specified period, used in calculating manufacturing costs.