Randy's Production Company Uses a Single Cost Pool for Fixed

question 52

Multiple Choice

Randy's Production Company uses a single cost pool for fixed manufacturing overhead. The amount for May 2012 was budgeted at $250,000; however, the actual amount was $350,000. Actual production for May was 12,500 units, and actual machine hours were 10,000. Budgeted production included 17,750 units and 12,375 machine hours. What is the budgeted fixed overhead rate per input unit?

• A) $25.00 per unit
• B) $35.00 per unit
• C) $20.00 per unit
• D) $14.09 per unit
• E) $14.08 per unit

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Definitions:

Megabytes

A unit of data measurement equal to 1024 kilobytes or 1,048,576 bytes, often used to quantify digital information.

Dimensional-analysis

A method used in science and engineering to convert between different units of measurement by using their dimensions.

Ounces

A unit of weight used in the British and U.S. customary measurement systems, equal to 1/16 of a pound.

Quart

A unit of liquid capacity equal to two pints or approximately 0.946 liters.