If the budgeted fixed manufacturing cost is $150000 and the per unit cost is $120, then budgeted production units will be ________?
Correct answer: A. $1,250
- A. $1,250
- B. $1,350
- C. $1,450
- D. $1,550
Explanation
Budgeted production units equal total budgeted fixed manufacturing cost divided by the stated per-unit cost: $150,000 ÷ $120 = 1,250 units. The dollar sign beside the unit options is a formatting error.
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 selling price minus variable manufacturing cost per unit, minus variable marketing cost per unit is equal to _____________?
If the contribution margin per unit is $12300 and the change in sold quantity of units is 50, then change in variable costing operating income will be __________?
If the per unit budget per unit cost is $200 and budgeted production units are 350, then fixed budgeted manufacturing costs will be __________?
If the production is greater than sales, then operating income under absorption costing is _________?
The normal costing and standard costing methods are used in decisions such as ___________?
If the target operating income is $84000 and contribution margin per unit is $600, then number of units must be sold to earn targeted operating income, will be __________?