Truckel, Inc -The Fixed Overhead Is an Allocated Common Cost

question 61

Multiple Choice

Truckel, Inc.currently manufactures a wicket as its main product.The costs per unit are as follows: $$\begin{array} { l r } \text { Direct materials and direct labor } & \$ 11 \\\text { Variable overhead } & 5 \\\text { Fixed overhead } & \$ { 8 } \\\quad \text { Total } & \$ 24\end{array}$$
-The fixed overhead is an allocated common cost.How much is the relevant cost of the wicket?

• A)$36
• B)$24
• C)$19
• D)$16

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Definitions:

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