Given the following information, what is the cost of unused capacity? Cost of material supplied is $3,200; cost of material used is $3,000; cost of material used per cake is $3; cost of material supplied per cake is $3.20. A. $0.20. B. $200. C. $2,000. D. $1,000. E. There is no unused capacity.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 8MC: What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials,...
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Given the following information, what is the cost of unused
capacity? Cost of material supplied is $3,200; cost of material used
is $3,000; cost of material used per cake is $3; cost of material
supplied per cake is $3.20.
A. $0.20.
B. $200.
C. $2,000.
D. $1,000.
E. There is no unused capacity.
Transcribed Image Text:Given the following information, what is the cost of unused capacity? Cost of material supplied is $3,200; cost of material used is $3,000; cost of material used per cake is $3; cost of material supplied per cake is $3.20. A. $0.20. B. $200. C. $2,000. D. $1,000. E. There is no unused capacity.
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