Questions: In an actual cost system, it is difficult to obtain timely information about the: a. direct labor cost per unit. b. overhead cost per unit. c. cost of direct materials consumed per unit. d. All of these choices are correct.

In an actual cost system, it is difficult to obtain timely information about the:
a. direct labor cost per unit.
b. overhead cost per unit.
c. cost of direct materials consumed per unit.
d. All of these choices are correct.
Transcript text: In an actual cost system, it is difficult to obtain timely information about the: a. direct labor cost per unit. b. overhead cost per unit. c. cost of direct materials consumed per unit. d. All of these choices are correct.
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Solution

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The answer is b: overhead cost per unit.

Explanation for each option:

a. Direct labor cost per unit: In an actual cost system, direct labor costs are typically tracked as they occur, making it relatively easier to obtain timely information about direct labor costs per unit.

b. Overhead cost per unit: Overhead costs are often accumulated over a period and then allocated to products, which can make it difficult to obtain timely information about the overhead cost per unit. This is because overhead costs can include a variety of indirect expenses that are not directly tied to production activities and may require estimates or allocations.

c. Cost of direct materials consumed per unit: Similar to direct labor, the cost of direct materials is usually tracked as they are used in production, allowing for more timely information about the cost of direct materials consumed per unit.

d. All of these choices are correct: This option is incorrect because, as explained above, timely information is more difficult to obtain specifically for overhead costs, rather than for direct labor or direct materials.

In summary, the difficulty in obtaining timely information in an actual cost system primarily pertains to overhead costs per unit.

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