A company has fixed production overhead costs totalling S20,000. The normal production level is 1,000 units per

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A company has fixed production overhead costs totalling S20,000. The normal production level is 1,000 units per year, yielding a standard fixed overhead rate of $20 per unit. If the actual production level is 500 units, how much would be the amount of fixed overhead per unit and the amount of total fixed overhead for the best answer: included in inventory'? Select the letter
Fixed overhead per unit Fixed overhead included in inventory
a. $20…………………………………………………................$10,000
b. $20…………………………………………………................$20,000
c. $40…………………………………………………................$10,000
d. $40…………………………………………………................$20,000
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Intermediate Accounting

ISBN: 978-0132612111

Volume 1, 1st Edition

Authors: Kin Lo, George Fisher

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