The Following Are Costs for a Selected Period: Direct Materials

question 17

Multiple Choice

The following are costs for a selected period: direct materials put into production, $97,000.00; direct labor cost of converting materials into product, $200,000; total indirect costs of manufacturing the product, $40,000. What is the per unit cost of manufacturing 20,000 units in this period?

• A) $4.85
• B) $16.85
• C) $8.85
• D) $12.85

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Definitions:

Interest Rate Changes

Variations in the cost of borrowing money or the rate paid on savings, which can affect economic activity.

Market Interest Rates

The prevailing rates at which borrowers can obtain loans and lenders can earn interest in the financial markets, influenced by monetary policy, market demand, and economic conditions.

Premium

An amount paid in addition to a standard rate or principal, often associated with insurance policies or bond prices over par value.

Discount

A reduction applied to the price of goods, services, or securities, either for promotional purposes or to reflect the present value of future cash flows.