Question 36 of rent when the company produced 1000 units Wha

Question 36 of rent when the company produced 1,000 units. What would be the cost per unit and in total to produce 2,000 units? O a 5100 Per Unit, $100,000 in Total O b. $100 Per Unit $200,000 in Total O c. $50 Per Unit, $100,000 in Total O d. $200 Per Unit $200,000 in Total

Solution

36) Rent is a fixed cost; hence it remains unchanged even though the number of units gets changed. Therefor Total rent remains 100000 even though number of units change to 2000.

Cost per unit = total cost/ number of units = 100000/2000= 50

Hence Option c 50 per unit;$100000 In total

37) Conversion cost are cost that incurred to convert raw material to finished product. It is the combination of direct labour cost and Manufacturing overhead cost.

Hence Option d Direct labour and manufacturing overhead cost

38) Performance report compare actuals with the set targets in order to evaluate the performance as well to identify the variance if any. In the given options production report showing budgeted and actual production for the past month is an example of performance report.

Hence Option b production report showing budgeted and actual production for the past month

39) Management accounting is relating to reporting internal management of the company. It is designed to help managers to make plan for the future and take decisions for the company. In the given points except point b rest are attributes relating to financial accounting.

Hence Option b Detailed segment reports about departments, products and customers.