Question

TB MC Qu. 9-94 (Algo) Warner Co. has budgeted fixed overhead of. Ding February 6. Name Cabas budgeted med overad och Pacifica capacity 3400 units, and budgeted production is 600 woduced and 60 dovestead What is the buttede overhead teed on practical capacity Ixc | v || B|| NM|

Answer 1

Answer

Option C

$37.00

Explanation

Budgeted fixed overhead rate (FOHR) is computed using the equation given below:

Budgeted FOHR = Budgeted fixed overhead / Practical capacity

= $310,800 / 8,400

= $37.00

Hence, the budgeted fixed overhead rate is $37.00/unit