If the per unit budgeted per unit cost is $165 and budgeted production units are 400 then fixed budgeted manufacturing costs will be ___________?
Correct answer: B. $66,000
- A. $36,000
- B. $66,000
- C. $56,000
- D. $46,000
Explanation
Multiplying the budgeted per-unit cost by planned production gives $165 × 400 = $66,000. This answer assumes the stated per-unit figure is the budgeted fixed manufacturing cost per unit, as the question intends.
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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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