Managerial Accounting problem - Please solve the problem below and explain how it is done, thank you. Mash Company uses process costing. During March, its Varnishing Department incurred costs of $63,250 for conversion. The beginning inventory was 1,500 units and 9,700 units were transferred to the Varnishing Department from the Sanding Department during March. The Varnishing Department's conversion costs in beginning inventory totaled $5,550. The ending inventory consisted of 1,200 units that were 25% complete with respect to conversion costs. Materials are added at the beginning of the process. A. What is the cost per equivalent unit for conversion costs during March? B. When the level of activity decreases, total variable costs... a. increase b. remain the same c. decrease in direct proportion to the decrease in activity d. decrease, but at a slower rate than the level of activity