on a job cost sheet, the formula to determine unit product cost is\na. units produced divided by total…
on a job cost sheet, the formula to determine unit product cost is\na. units produced divided by total product costs.\nb. total direct labor divided by units produced.\nc. total product costs divided by units produced.\nd. total materials divided by units produced.
Answer
Explanation:
Step1: Recall unit - cost concept
Unit product cost is the cost per unit of production. It is calculated by taking the total cost associated with producing a batch of products and dividing it by the number of units produced in that batch.
Step2: Analyze each option
- Option a: "units produced divided by total product costs" gives the number of units per dollar of cost, not the unit product cost.
- Option b: "total direct labor divided by units produced" gives the direct - labor cost per unit, not the overall unit product cost which includes materials and overheads too.
- Option c: "total product costs divided by units produced" is the correct formula for unit product cost as it spreads the total cost over the number of units made.
- Option d: "total materials divided by units produced" gives the materials cost per unit, not the overall unit product cost.
Answer:
C. total product costs divided by units produced.