Refer to Information Above

question 32

Multiple Choice

Refer to information above. If direct labor and overhead costs totaled $172,000, what would be the unit cost?

• A) $1.23.
• B) $1.08.
• C) $1.56.
• D) $3.44.

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Definitions:

Rent Expense

The cost incurred by a business for the use of a property, facility, equipment, or other asset under a lease agreement, charged as an expense.

Prepaid Rent Expense

An expense account that records payments for rent made in advance of the rental period.

Adjusting Entry

At the end of an accounting timeframe, records are made to attribute income and spending to the specific period in which they were incurred.

Accumulated Depreciation

The total sum of depreciation for a fixed asset that has been charged to expense since the asset was acquired and placed into service.