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

question 83

Multiple Choice

Randy's Production Company uses a single cost pool for fixed manufacturing overhead.The amount for May 2015 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:

Productive

The efficiency and effectiveness with which input resources (like time, labor, and materials) are transformed into outputs (goods or services) that generate value.

Rankings/Comparisons Performance

The assessment of an individual's or organization's performance relative to others based on specific criteria or standards.

Absolute Distance

A measure of the physical space between two points, often determined by a standard unit of length.

Behaviorally Anchored Rating Scales (BARS)

A performance appraisal method that rates behavior in terms of a scale showing specific examples of employee actions that represent various levels of performance.