If the budgeted quantity of output unit is 450 and budgeted overhead fixed cost is $250, then budgeted fixed overhead output unit will be __________?

Correct answer: B. $112,500

  • A. $142,500
  • B. $112,500
  • C. $122,500
  • D. $132,500

Explanation

Budgeted fixed overhead based on the stated unit calculation is 450 output units × $250 = $112,500. This gives option b.

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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.

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