Answer the following questions using the information below:
Monticello Furniture manufactures expensive tables. Its varnishing department is fully automated and requires substantial inspection to keep the machines operating properly. An improperly varnished table is very expensive to correct. Inspection hours for the 5,000 tables varnished in September totaled 1,250 hours by 8 employees. Eight quarts of varnish were used, on average, for each table. The standard amount of varnish per table is nine quarts. The cost of inspection for September was equal to the budgeted amount of $38,000.
-What is the inspection cost per unit?
A)$30.40
B)$7.60
C)$3,800
D)$4,000

Question

Quizplus · Accepted Answer

To find the inspection cost per unit, we need to divide the total inspection cost by the number of units produced. 
Inspection cost per unit = Total inspection cost / Number of units produced 
Total inspection cost = $38,000 
Number of units produced = 5,000 
Inspection cost per unit = 38,000 / 5,000 = $7.60 
Therefore, the inspection cost per unit is $7.60.

As there is only one correct answer (B), there is no need for a best choice(s) explanation.

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