Total budgeted monthly overhead cost can be determined by means of the following formula: (budgeted variable-overhead cost per unit x total activity units) + budgeted fixed-overhead cost per month.

Question

Quizplus · Accepted Answer

This formula accurately represents how to calculate total budgeted monthly overhead cost by adding together the product of the budgeted variable-overhead cost per unit and the total activity units (which gives the total variable overhead cost) to the budgeted fixed-overhead cost per month.

Total Budgeted Monthly Overhead Cost Can Be Determined by Means