If a predetermined FOH rate is not applied and the volume of production is reduced from the planned capacity level, the cost per unit expected to:

(A) Remain unchanged for fixed cost and increase for variable cost
(B) Increase for fixed cost and remain unchanged for variable cost
(C) Increase for fixed cost and decrease for variable cost
(D) Decrease for both fixed and variable costs

Cost of Goods Manufactured can be calculated as follow:

(A) Total factory Cost Add Opening Work in process inventory Less Closing Work in process inventory
(B) Total factory Cost Less Opening Work in process inventory Add Closing Work in process inventory
(C) Total factory Cost Less Opening Work in process inventory Less Closing Work in process inventory
(D) Total factory Cost Add Opening Work in process inventory Add Closing Work in process inventory

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