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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