Which relationship represents fixed overhead budgeted at the beginning of the year?
A)BFOH = SFOR × AH
B)BFOH = SFOR × SH for actual production
C)BFOH = SFOR × SH for planned production
D)BFOH = SFOR/SH for actual production

Question

Quizplus · Accepted Answer

C represents the relationship between fixed overhead and the standard fixed overhead rate multiplied by the planned production level. This reflects the budgeted amount for fixed overhead at the beginning of the year before any production takes place.

Which Relationship Represents Fixed Overhead Budgeted at the Beginning of the Year