Nano Company Uses a Weighted Average Process Cost System

question 83

Essay

Nano Company uses a weighted average process cost system. The department started and finished 149,000 units during the current period. The ending inventory consists of 60,000 units that are 75% complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $262,500 and overhead costs of $126,000.
(a) Compute the equivalent cost per unit for direct labor.
(b) Compute the equivalent cost per unit for overhead.

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Definitions:

Bureaucracy

A system of government in which most of the decisions are made by state officials rather than by elected representatives.

Hierarchy of Authority

The arrangement or classification of individuals within an organization based on power, status, and responsibilities, creating a structure of superior and subordinate relationships.

Implementation Decisions

The actions and strategies put into place to execute policies, plans, or programs.

Executive Branch

The part of government responsible for implementing, supporting, and enforcing laws; in the U.S., it includes the President, the Vice President, and the Cabinet.