A Company Has Fixed Production Overhead Costs Totalling $20,000 B) $$\begin{array} { | l | l | } \text { Fixed overhead per unit } & \text { Fixed overhead included in inventory } \\\hline 6.25 & 12,500\end{array}$$

question 144

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:

• A) \[\begin{array} { | l | l | }
• \text { Fixed overhead per unit } & \text { Fixed overhead included in inventory } \\
• \hline 10.00 & 32,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \text { Fixed overhead per unit } & \text { Fixed overhead included in inventory } \\
• \hline 6.25 & 12,500
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \text { Fixed overhead per unit } & \text { Fixed overhead included in inventory } \\
• \hline 10.00 & 20,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \text { Fixed overhead per unit } & \text { Fixed overhead included in inventory } \\
• \hline 6.25 & 20,000 \\
• \hline
• \end{array}\]

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Definitions:

Fetal Skull

The bony structure forming the head of the fetus, characterized by soft spots called fontanelles that allow for compression during birth.

Intramembranous Bones

Bones that develop directly within sheets of connective tissue, such as the skull's flat bones.

Hyaline Cartilage

A translucent type of cartilage found on many joint surfaces, characterized by its glassy appearance.

Fetal Skull

The fetal skull is the soft, flexible head structure of a fetus that is designed to aid in the birth process by slightly deforming as it passes through the birth canal.