A company has fixed production overhead costs totaling SI0,000. The normal production level is 1,000 units per year, yielding a standard fixed overhead rate of $10 per unit. If the actual production level is 1,250 units, how much would be the amount of fixed overhead per unit and the amount of total fixed overhead included in inventory? Select the letter for the best answer:
Fixed overhead per unit Fixed overhead included in inventory
a. $8……………………………………………………………$8,000
b. $8…………………………………………………………..$10,000
c. $10…………………………………………………………$10,000
d. $10…………………………………………………………$12,500