A Company Has Fixed Production Overhead Costs Totalling $20,000

question 118

Multiple Choice

A company has fixed production overhead costs totalling $20,000.The normal production level is 2,000 units per year,yielding a standard fixed overhead rate of $10.00 per unit.If the actual production level is 3,200 units,how much would be the amount of fixed overhead per unit and the amount of total fixed overhead included in inventory? Select the letter for the best answer:

---

Definitions:

Stability

A condition where a system, such as an economy or financial market, operates without excessive fluctuations or crises.

Invest

The act of allocating resources, often money, in the expectation of generating an income or profit.

Launching

The act of officially starting or introducing a new product, service, or business to the market.

Probabilities

An assessment of an event's probability, denoted by a figure that falls between 0 and 1.