If total fixed costs are $25 000 what is the per unit overhead cost for R Co if 50 000 units are produced? Assume units of production are used as the basis for applying overhead to product.

Question

Quizplus · Accepted Answer

To calculate the per unit overhead cost we need to divide the total fixed costs by the number of units produced:

Per Unit Overhead Cost = Total Fixed Costs / Number of Units Produced

Per Unit Overhead Cost = $25,000 / 50,000 units = $0.50

Therefore, the correct answer is (C) $0.50.

If Total Fixed Costs Are $25 000 What Is the Per