Which of the following is the mathematical expression for the budgeted fixed overhead cost per unit of cost allocation base?
A) Budgeted fixed overhead cost per unit of cost allocation base = Actual total costs in fixed overhead cost pool ÷ Budgeted total quantity of cost allocation base
B) Budgeted fixed overhead cost per unit of cost allocation base = Budgeted total costs in fixed overhead cost pool ÷ Budgeted total quantity of cost allocation base
C) Budgeted fixed overhead cost per unit of cost allocation base = Actual total costs in fixed overhead cost pool ÷ Actual total quantity of cost allocation base
D) Budgeted fixed overhead cost per unit of cost allocation base = Budgeted total costs in fixed overhead cost pool ÷ Actual total quantity of cost allocation base

Question

Quizplus · Accepted Answer

The budgeted fixed overhead cost per unit of cost allocation base is calculated by dividing the budgeted total costs in the fixed overhead cost pool by the budgeted total quantity of cost allocation base. This is because the budgeted fixed overhead cost per unit of cost allocation base represents the estimated amount of fixed overhead costs that will be incurred for each unit of the cost allocation base. Therefore, the formula for calculating the budgeted fixed overhead cost per unit of cost allocation base is B) Budgeted fixed overhead cost per unit of cost allocation base = Budgeted total costs in fixed overhead cost pool ÷ Budgeted total quantity of cost allocation base.

Which of the Following Is the Mathematical Expression for the Budgeted