When Fixed Costs Are $46,500,the Variable Cost Is $12 Per

question 50

Multiple Choice

When fixed costs are $46,500,the variable cost is $12 per unit,and the product sells for $22 per unit,the breakeven point is

• A) 4,650 units.
• B) 9,300 units.
• C) 2,325 units.
• D) 6,975 units.

---

Definitions:

Machine-Hours

A gauge for the level of production or activity, calculated through the duration machines are in use.

Manufacturing Overhead

Indirect costs related to manufacturing that are not directly tied to specific units produced, such as maintenance and utilities.

Machine-Hours

A unit of measure representing the operation of one machine for one hour, used in allocating manufacturing costs.

Predetermined Overhead Rate

It's a rate used to allocate manufacturing overhead based on a particular activity (like labor hours or machine hours).