The Assembly Department of Protocol,Inc

question 119

Multiple Choice

The Assembly Department of Protocol,Inc.,manufacturer of computers,incurred $280,000 in direct material costs and $70,000 in conversion costs.The equivalent units of production for direct materials and conversion costs are 1000 and 900,respectively.The weighted-average method is used.The cost per equivalent unit of production for direct materials is ________.(Round your answer to the nearest cent.)

• A) $77.78
• B) $70.00
• C) $311.11
• D) $280.00

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Definitions:

Exclusive Franchise

A licensing agreement giving a single franchisee the right to be the only provider of the franchisor's product or service in a specific geographical area.

Variable Selling

Variable selling refers to the costs associated with selling products that vary with the level of sales activities, such as commissions and shipping expenses.

Administrative Expense

Costs related to the general operation of a business, including executive salaries, legal and financial fees, and other overhead costs.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales activities.