Answer the Following Questions Using the Information Below:
the East

question 9

Multiple Choice

Answer the following questions using the information below:
The East Company manufactures several different products. Unit costs associated with Product ORD210 are as follows:
$$\begin{array} { l r } \text { Direct materials } & \$ 54 \\\text { Direct manufacturing labor } & 8 \\\text { Variable manufacturing overhead } & 11 \\\text { Fixed manufacturing overhead } & 25 \\\text { Sales commissions ( } \% \text { of sales) } & 5 \\\text { Administrative salaries } & 12 \\\quad \text { Total } & \$ 115\end{array}$$
-What is the percentage of the total variable costs per unit associated with Product ORD105 with respect to total cost?

• A) 72%
• B) 68%
• C) 75%
• D) 70%

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Definitions:

Budgeted Production

Forecasted amount of products a company plans to produce over a specific period, based on its budget.

Raw Material A

The primary or basic materials that are used in the production of goods, not yet processed or manufactured.

Materials Purchases

The procurement of raw materials required for production or manufacturing processes.

Sales Budget

A detailed plan that estimates the expected sales for a particular period, including volume and revenue forecasts.