If the budgeted total cost in fixed overhead is $465200 and the budgeted total quantity is $8750, then budgeted fixed overhead cost per unit will be ____________?
Correct answer: C. $53.17
- A. $83.17
- B. $73.17
- C. $53.17
- D. $63.17
Explanation
Budgeted fixed overhead cost per unit is found by dividing total budgeted fixed overhead by budgeted quantity: $465,200 ÷ 8,750 = approximately $53.17.
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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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