Answer the following questions using the information below:
Argon Corp. had capacity to produce 15,000 units of L3 using 30,000 kg of direct materials. Argon produced 14,750 units of L3 by processing 27,500 kg of direct materials. Conversion cost per unit is $7.50. Argon can add or reduce manufacturing capacity in increments of 2,500 kgs.
-What is the cost of unused capacity for conversion costs of Argon?
A) $3,750
B) $7,500
C) $9,375
D) $1,875
Correct Answer:
Verified
Q123: Direct material cost is an example of
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Q127: It is relatively easy to identify unused
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Q129: Downsized capacity is the amount of productive
Q130: Executive training costs is an example of
Q132: Engineered costs _.
A) possess a high level
Q134: It is difficult to determine unused capacity
Q137: Which of the following statements is true
Q139: Engineered costs result from a cause-and-effect relationship
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