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

question 96

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:

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Definitions:

Scan Function

In automation, particularly in PLC (Programmable Logic Controller) systems, the scan function refers to the cyclic process where the system reads inputs, executes logic, and updates outputs systematically.

Horizontal

Refers to an orientation or position that is parallel to the ground or baseline, often used to describe direction or alignment.

Vertical

Referring to the direction or orientation that is perpendicular to the horizon or ground level, often used in spatial descriptions.