If the budgeted fixed cost is $48000 and per unit budgeted denominator level is 1200 units, then budgeted fixed cost would be __________?
Correct answer: D. $40
- A. $50
- B. $45
- C. $55
- D. $40
Explanation
The fixed overhead rate per denominator-level unit is calculated as $48,000 ÷ 1,200 units = $40 per unit. Thus option d gives the required amount, although the stem likely means budgeted fixed cost per unit.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The difference between master budget capacity and practical capacity is considered as ________?
In accounting terms, the term capacity refers to ____________?
If the direct material cost of sold goods is $4500 and revenues are $9000, then the contribution margin would be _________?
If the change in variable costing in operating income is $9000 and contribution margin per unit is $6000, then change in sold units would be __________?
The theoretical capacity of the company considers ideal goal of ___________?
Which is considered as most stable measure of the capacity utilization?