The higher the denominator level the higher the budgeted fixed manufacturing cost rate per unit.

Name: The higher the denominator level the higher the budgeted fixed manufacturing cost rate per unit.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The budgeted fixed manufacturing cost rate per unit is calculated by dividing the total fixed manufacturing costs by the denominator level (number of units). A higher denominator level results in a lower cost rate per unit, not higher.

The Higher the Denominator Level the Higher the Budgeted Fixed