Unit costs for each job are computed by dividing

Question

Quizplus · Accepted Answer

Unit costs are determined by dividing the total cost of direct materials, direct labor, and overhead by the total number of units produced. This method provides a more accurate representation of the per-unit cost of production, because it takes into account all costs incurred in producing the units. Option A is incorrect because it is based on estimated costs, which may not reflect actual costs. Option B is incorrect because it is based on actual costs and units sold, which may not be representative of the full cost of production. Option D is incorrect because it uses estimated total costs with actual units produced.

Unit Costs for Each Job Are Computed by Dividing