The fixed budgeted manufacturing cost is $45000 and the budgeted production units are 900, then budgeted fixed manufacturing cost per unit will be ____________?
Correct answer: C. $50
- A. $200
- B. $150
- C. $50
- D. $100
Explanation
Budgeted fixed manufacturing cost per unit is found by dividing total budgeted fixed cost by budgeted production: $45,000 ÷ 900 = $50. Therefore, option c is correct.
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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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