Question 23 Not yet answered Marked out of 2.00 Flag question Question text Vital Industries manufactured 1,200 units of its product Huge in the month of April. It incurred a total cost of $120,000 during the month. Out of this $120,000, $45,000 comprised of direct materials used in the product and the rest was incurred because of the conversion cost involved in the process. Ryan had no opening or closing inventory. What will be the total cost per unit of the product, assuming conversion costs contained $10,000 of indirect labor? Question 23Answer a. $70 b. $90 c. $100 d. $30 Question 24 Not yet answered Marked out of 2.00 Flag question Question text What is a job order cost system? Question 24Answer a. A cost accounting system that accumulates costs by departments or processes. b. A cost accounting system that accumulates costs by individual jobs or products. c. A cost accounting system that calculates costs based on the level of sales activity. d. A cost accounting system that calculates costs based on the level of activity in the production process. Question 25 Not yet answered Marked out of 2.00 Flag question Question text What is the difference between a favorable variance and an unfavorable variance? Question 25Answer a. A favorable variance is when actual results are less than budgeted results, while an unfavorable variance is when actual results exceed budgeted results. b. A favorable variance is a positive variance, while an unfavorable variance is a negative variance. c. A favorable variance is a negative variance, while an unfavorable variance is a positive variance. d. A favorable variance is when actual results exceed budgeted results, while an unfavorable variance is when actual results are less than budgeted results. What is the formula for calculating contribution margin? Question 26Answer a. Total sales - Total fixed costs. b. Total variable costs - Total fixed costs. c. Total fixed costs - Total variable costs. d. Total sales - Total variable costs.

**Question 23: Total Cost Per Unit** To find the total cost per unit, we need to divide the total cost by the number of units produced. The total cost is $120,000, which includes $45,000 for direct materials and $75,000 for conversion costs (since $120,000 - $45,000 = $75,000). The conversion costs include $10,000 of indirect labor, but this doesn't change the total cost calculation. Total cost per unit = Total cost / Number of units Total cost per unit = $120,000 / 1,200 units = $100 **Correct Answer: c. $100** **Question 24: Job Order Cost System** A job order cost system is a cost accounting system that accumulates costs by individual jobs or products. This system is typically used when products are manufactured based on specific customer orders, and each product or batch can have different costs. **Correct Answer: b. A cost accounting system that accumulates costs by individual jobs or products.** **Question 25: Favorable vs. Unfavorable Variance** A favorable variance occurs when actual results are better than budgeted results, meaning costs are lower or revenues are higher than expected. An unfavorable variance is when actual results are worse than budgeted, meaning costs are higher or revenues are lower than expected. **Correct Answer: a. A favorable variance is when actual results are less than budgeted results, while an unfavorable variance

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