The Maple Company Has Total Fixed Costs of $400,000

question 17

Multiple Choice

The Maple Company has total fixed costs of $400,000.It also has $200,000 in total variable costs.These costs exist at a production level of 100,000 units.The fixed cost per unit is

• A)$2.00.
• B)$6.00.
• C)$1.50.
• D)$4.00.

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Definitions:

Machine-Hours

A measure of production time, indicating how many hours machines are used in the manufacturing process.

Direct Labor-Hours

The total time workers spend producing a product or service, directly associated with the specific work on the product.

Departmental Predetermined Overhead Rates

Overhead rates calculated for specific departments within a manufacturing facility, reflecting the unique costs associated with each department's operations.

Machine-Hours

A measure of the time machines are used in the production process, often used as a basis for allocating overhead costs in a manufacturing environment.