Yellow Mountain Manufacturing Factors Practical Capacity as a Denominator to Calculate

question 33

Multiple Choice

Yellow Mountain Manufacturing factors practical capacity as a denominator to calculate budgeted fixed overhead. Theoretical capacity is 12,000 units per year with practical capacity of 9,000 units per year. Budgeted fixed overhead costs were $690,000 and actual overhead costs were $730,000 with actual output of 8,000 units. Which of the following statements is true?

• A) The budgeted cost per unit of supplying the capacity was $86.25
• B) The actual cost of supplying capacity was $76.67 per unit
• C) The budgeted cost of supplying the capacity was $76.67 per unit
• D) The budgeted cost of supplying the capacity was $57.50 per unit.

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Meeting Minutes

A written record of the main points and decisions made during a meeting.