Warner CoHas Budgeted Fixed Overhead of $150,000

question 109

Multiple Choice

Warner Co.has budgeted fixed overhead of $150,000.Practical capacity is 6,000 units,and budgeted production is 5,000 units.During February,4,800 units were produced and $155,600 was spent on fixed overhead.What is the budgeted fixed overhead rate based on practical capacity?

• A)$31.12
• B)$31.25
• C)$30.00
• D)$25.00

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Definitions:

Probability

Probability is a branch of mathematics that measures the likelihood of a given event's occurrence, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Returns

The profit or loss derived from investing or saving, often expressed as a percentage of the original investment.

Risk Premium

The return in excess of the risk-free rate of return that an investment is expected to yield.

Risky Asset

An investment that carries a significant possibility of losing some or all of its value.