Warner Co.has budgeted fixed overhead of $150,000.Practical capacity is 6,000 units,and budgeted production is 5,000 units.During February,4,800 units were produced and $155,600 was spent on fixed overhead.What is the budgeted fixed overhead rate based on practical capacity?
A)$31.12
B)$31.25
C)$30.00
D)$25.00

Question

Quizplus · Accepted Answer

The budgeted fixed overhead rate based on practical capacity is calculated by dividing the total budgeted fixed overhead by the practical capacity. So, $150,000 / 6,000 units = $25.00 per unit.

Warner CoHas Budgeted Fixed Overhead of $150,000