Unit costs for each job are computed by dividing
A)estimated total costs by planned units to be produced.
B)actual costs by actual units sold.
C)cost of direct materials,direct labor,and overhead by number of units produced.
D)estimated total costs by actual units sold.

Question

Quizplus · Accepted Answer

Unit costs are computed by dividing the cost of direct materials, direct labor, and overhead by the number of units produced. This helps in determining the cost per unit and pricing the product accordingly. Options A and D use estimates and may not provide accurate costing information, while option B divides actual costs by actual units sold and does not consider overhead costs. Hence, option C is the best choice.

Unit Costs for Each Job Are Computed by Dividing