Answer the following questions using the information below:
Randa Company produces wood statues. Management has provided the following information:

-What is the cost per statue if throughput costing is used?
A) $7.50
B) $5.00
C) $11.00
D) $9.50

Question

Answer the following questions using the information below:
Randa Company produces wood statues. Management has provided the following information:

-What is the cost per statue if throughput costing is used?
A) $7.50 
B) $5.00 
C) $11.00 
D) $9.50

Quizplus · Accepted Answer

Throughput costing only considers direct materials as the variable cost. Therefore, if the cost per statue is given as $5.00, it implies that this is the cost of direct materials per unit, as throughput costing does not include fixed or variable overheads or labor costs in the cost per unit calculation.

Answer the Following Questions Using the Information Below