If the per unit budget per unit cost is $200 and budgeted production units are 350, then fixed budgeted manufacturing costs will be __________?
Correct answer: C. $70,000
- A. $40,000
- B. $60,000
- C. $70,000
- D. $50,000
Explanation
Using the stated per-unit cost, total budgeted manufacturing cost is $200 × 350 units = $70,000. Therefore, option c matches the calculation.
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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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