The budgeted quantity of output unit is 250 and budgeted overhead fixed cost is $150, then budgeted fixed overhead output unit will be __________?
Correct answer: D. $37,500
- A. $67,500
- B. $57,500
- C. $47,500
- D. $37,500
Explanation
Using the question's intended calculation, budgeted fixed overhead is 250 output units × $150 per unit = $37,500. The other choices do not result from multiplying the two given figures.
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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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