Calculate fixed production overhead costs per unit:

INTRODUCTION TO COST ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	RM 4.00 per unit
B	RM 5.00 per unit
C	RM 6.00 per unit
D	RM7.00 per unit

Explanation:

Detailed explanation-1: -In order to know the manufacturing overhead cost to make one unit, divide the total manufacturing overhead by the number of units produced. The total manufacturing overhead of $50, 000 divided by 10, 000 units produced is $5.

Detailed explanation-2: -Calculate fixed cost per unit by dividing the total fixed cost by the number of units for sale. Example: ABC Dolls has 6, 000 dolls available for customer purchase. To determine the average fixed cost, divide $85, 200 (the total fixed cost) by 6, 000 (the number of units for sale).

Detailed explanation-3: -Calculating Manufacturing Cost per Unit To determine the total manufacturing cost per unit, you need to divide your total manifesting costs by the total number of units produced during a given period.

Detailed explanation-4: -Fixed cost = Total cost of production-(Variable cost per unit x number of units produced)

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