The fixed overhead rate is computed as_____.
A)budgeted fixed manufacturing overhead / expected volume of production
B)actual fixed manufacturing overhead / actual volume of production
C)budgeted fixed manufacturing overhead / actual volume of production
D)actual fixed manufacturing overhead / expected volume of production

Question

Quizplus · Accepted Answer

The fixed overhead rate is calculated by dividing the budgeted fixed manufacturing overhead by the expected volume of production. This rate is then used to allocate fixed overhead costs to the actual production based on the level of activity.

The Fixed Overhead Rate Is Computed As_____