At Dwight Incorporated, Total Fixed and Variable Costs Are $410,000

question 253

Multiple Choice

At Dwight Incorporated, total fixed and variable costs are $410,000 at a production level of 120,000 units. The company has total fixed costs of $245,000. The fixed cost per unit at a production level of 200,000 units is

• A)$3.42
• B)$2.04
• C)$1.67
• D)$1.23

---

Definitions:

Departmental Overhead Rate

a specific type of overhead rate calculated for individual departments within a company, allowing for more accurate allocation of overhead costs based on departmental activities.

Departmental Overhead Rate

The rate at which indirect costs are allocated to different departments within a company, often used for costing purposes.

Direct Labor Hours

The total number of hours worked by employees directly involved in manufacturing a product or providing a service, often used in calculating labor cost and efficiency.

Machine Hours

A measure of the amount of time a machine is operated, used in costing to allocate expenses based on how long a machine has been in use.